KEY POINTS

  • Ethereum has failed to break the key resistance at $370 and has stayed within $350
  • Bulls were able to protect the $350 level by preventing a drop to $340
  • Failure of these major supports could mean Ethereum would be visiting $310 soon

Ethereum has failed to break the key resistance at $370 and has further drop to $350. Losses due to the decreasing hype surrounding decentralized finance, as well as key technical indicators, are looking to bring Ethereum down to $310 in the short term.

Ethereum closed Sunday at $352 on Coinbase but that’s after failing to break past $370 three days prior. The failure to break is attributed to the news that derivatives exchange BitMEX was charged by both the Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC) of failure to implement required anti-money laundering (AML) and know-your-customer (KYC) features. The drop in Bitcoin cascaded to Ethereum on Thursday, resulting in losses for the second largest cryptocurrency.

With that, the Thursday high was printed at $372, and breaking past $355, a major support zone, led to the 100 simple moving average (SMA) in the 4-hours chart to move into the negative zone, NewsBTC.com noted. On Sunday, further losses were stopped as bulls took the reins to keep the price within the $350 mark. 

In the short-term, Ethereum faces multiple resistances on its move upwards. The first one is at $353, which was near the Fib retracement level when Ethereum went from $372 to $335 last week. Break that level and the price could target $370 or $380 after a few days. 

Failure to sustain the $350 to $355 level could signal further downsides immediately to the $340 level, According to NewsBTC.com, the first major support is around $334. Staying above this level would prevent

Yesterday I was in shock, today I am wearing my Bitcoin socks. Free money is real.

It is enough to shake my faith in reality that after knowing for the bulk of my life there was no such thing as free money, I just received a chunk. Now it’s actually, totally naive to believe there is no such thing as free money because the vast majority of people in this world get just that. The breadwinners are a small proportion of the modern world and the majority get paid out by them all day, every day. I’ll try not go too “Ayn Rand” on you but when you think of the ratio of dependants to creators of value that the dependants rely on, the ratio is sobering.

But I am programmed not to believe in “free money” and yesterday crypto handed me $1,700 for basically nothing. A gift of $1,700 out of thin air is worth an Anglo-Saxon verb and I ejaculated one a few times.

So let me continue right away with my conclusion. Crypto is a huge creator of wealth that is doing an end run around all those rent-seeking “rentiers” who slice and dice us all to death. Because of this avoidance of such rip-offs, or shall we call them depredations, the process showers the early adopters with money. Let’s hope this is an unstoppable process because if it is, it will generate vast wealth by amputating the guilds, cliques and oligarchies that siphon off the wealth of the world for themselves by dint of the currently inescapable structure of human society.

But this is not my point and comrade I have no wish to come across like a post-modernist.

Here is the thing. Crypto is giving income-starved people a shot