The crypto currencies took a big hit over the weekend with Ethereum falling over -13% from Friday's closing level. The second largest digital currency is down some -34% since last Monday's levels (one week ago). It is down -54% from its all-time high in November to the low today.
Bitcoin is down around 8% from Friday's close and -22% from since last Monday. It is down over -52% from the high in November to the low today
Ouch.
The story for the digital currencies has shifted from an inflation hedge, to a more "risk-off" instrument. Also, concerns about regulation are weighing on the digital currencies.
Russia last week proposed banning the use of mining the digital currency. The US continues to threaten more regulation. Today, US Deputy Treasury Secretary Adeyemo is saying that new crypto rules are coming as soon as possible is possible. This via report from CNBC.
Technically looking at the daily chart of Ethereum, the price has now fallen below the 50% midpoint of the move up from the March 2020 low at $2485.79. The low price today reached $2173.87. The all-time high price reached $4868.82 back on November 10, before starting its run to the downside. The 61.8% retracement of the same move higher comes in at $1923.39. There is another stronger support near swing lows from May, June, and July 2021 near the $1700 level.
Looking at bitcoin daily chart below, like Ethereum, the price has also moved below its 50% midpoint at $36425. That will be eyed as a close risk level.
On the downside, there is a Key swing area between $20,800 and $30066. The 61.8% retracement of the move up from the March 2020 low is near the low of that swing area $28,737.30.
Those levels and ethereal men bitcoin are still a ways away from current prices of $2189 and $33,400. Nevertheless, the price can go quickly in the digital currency market. They may be good trading instruments that made a lot of money for traders, but they can also lose a lot of money for traders. Also, the stories can change quickly especially when regulations become a key point of discussion. That can be scary.
