Ethereum [ETH] Price Analysis: Reassess H2 2019 lows as coronavirus tests economies' resilience
The cryptocurrency market is reeling from the devastating effects of last week's falls.
Obviously, the world had underestimated the effects of the coronavirus, the origin of which dates back to China. There, the virus devastated lives, disrupted the workflow, caused panic, and has now spread to Europe and Africa.
Europe, especially Italy, is closed and its government has announced a stimulus package. The Fiat will be affected and here, Bitcoin and other quality assets like Ethereum, analysts believe they have a chance to cement their importance.
Ethereum is specifically devastated. Last week, the coin sank more than 40% to date, but there is confidence thanks to the fact that it is a quality project and the basis of a new innovation, DeFi.
Maker and DeFi trust ETH Price Performance
From here, these financial applications that are used every day depend on the performance of the underlying asset, ETH. In case you return to positive territory, DeFi apps can come back to life.
Due to last week's cut as Ethereum went offline as the network clogged, the MakerDAO smart contract collateral auction is estimated to have lost more than $ 4 million as some gatekeepers took advantage of the situation and made zero offers.
ETH / USD price analysis
The Ethereum (ETH) price still bearish. As prices hover around $ 110, H2 2019's main support line, traders can only stay on the sidelines.
From the table, there is some support, but the sails are knotted along the bottom BB, which means the bear momentum is strong.
But there's more than that. As long as prices continue to trend within the huge bear bar with light volumes, there is a risk that bears will push prices below the main support line to less than $ 100.
In that case, ETH may collapse to the December 2018 lows of around $ 70 before recovering, or worse, print new lows. In light of this, the best course of action is to remain neutral.
Aggressive traders can start loading drops once ETH recovers more than $ 150 or March 13 highs. The immediate goal will be $ 200 at the price of March 12.
Disclaimer: The opinions expressed are those of the author and are not investment advice. Trading in any form involves risk. Do your research.
