The last few weeks have not been promising for the cryptocurrency market, as most coins have failed to test major resistance levels. Although volatility is still lower than it was last week, the top altcoins are still weak, with most of them remaining in the red. Since January 2018, there has been an 82% drop in the market capitalisation of altcoins.
Ethereum takes the largest hit
All eyes have been on the price of Ethereum, particularly considering that the coin has been the hardest hit among the top cryptos, with no sign of a price support level near. Over the last 24 hours, Ethereum has plunged 11.67% to trade at £134 ($175). This is the lowest price level Ethereum has been since July 2017.
With no evidence of a bull run coming soon, many crypto experts believe that it’s still not the right time to enter the market at these attractive price levels, simply because Ethereum does not seem to have an obvious support level or bottom. However, most of them agree that if Ethereum is able to break its £153 ($200) and £180 ($235) resistance levels, then a bull run will be inevitable.
Bitcoin struggling to break resistance
Bitcoin has become rather stable in the past several days, with its price hovering above its long-term support level of £4,405 ($6,000). However, the news about the suspension of two cryptocurrency-based securities by the SEC wasn’t the best way to begin the week, and the coin has responded by dropping 1.46% in the last 24hrs to trade at £4,897 ($6,263).
Although the coin appears to have consolidated, a move below £4,405 ($6,000) could set off a long-term sell-off, since it would reflect a 2018 price low for Bitcoin. Many crypto enthusiasts are thus hoping that the SEC may consider approving a bitcoin ETF appeal so that we may finally move out of the bear market state, hopefully allowing Bitcoin to break its former resistance level of £5,756 ($7,500).
Vitalik Buterin fights back on crypto adoption and growth
With Ethereum’s price plunging to record low, Vitalik Buterin, the co-founder of Ethereum, claimed on Twitter that he was misquoted by Bloomberg when he said in an interview at the Ethereum Industry Summit that:
The blockchain space is getting to the point where there’s a ceiling in sight. If you talk to the average educated person at this point, they probably have heard of blockchain at least once. There isn’t an opportunity for yet another 1,000-times growth in anything in the space anymore.
He made it clear that he was not referring to the potential growth in the adoption of crypto or the blockchain, saying that he meant further growth of crypto must come with actual usage, and not necessarily more attention. His tweet reads as follows:
What I *actually* said is that, because large portions of the population have already heard of crypto, further growth of crypto in any sense must come from *depth* (ie. actual usage), and not bringing in more attention
— Vitalik Non-giver of Ether (@VitalikButerin) September 12, 2018