Ethereum falls sharply below $4,000 for first time since mid-October but then recovers above it
Ethereum briefly fell below one of the strongest supports, cryptocurrency analysts say. As of now, the second-largest cryptocurrency has recovered back above $4,000, but the market might not be ready to V-shape recovery yet.
The liquidation rates in the cryptocurrency market for Ethereum have reached $ 60 million in the last few hours. According to data from various centralized exchanges, a significant number of leveraged orders for Ethereum have been gathered at or close to the $4,000 support.
Previously, Ethereum tested the area near the $ 4,000 mark on several occasions, but failed to cross it and stay below. As for now, Ethereum is trading at $4,053 with a total 10% daily loss.
U.Today previously reported that Bloomberg analysts saw Ethereum trading in the range for a long time after the ATH retracement. The lower border of the range was $4,000 and the upper $5,000.
Other cryptocurrencies like Bitcoin, Cardano, or Doge lose 7% of their value, which is slightly less than Ethereum’s 10% loss. According to data from TradingView, the cryptocurrency market mostly follows the stock market’s path by rapidly losing value due to risks caused by the new pandemic measures.
According to the exchange flows, traders are not yet rushing to sell all of their assets, as strong inflows were present previously when Bitcoin was trading near $ 60,000. Currently, the main selling pressure comes from retail traders and institutions, and crypto miners’ wallet activity still remains at year lows.
