The bigger theme of the markets yesterday was not the continued consolidation and correction that we have been seeing in the BTC markets over the last few days but the fact that the ETH prices have fallen hard and are now trading well below the $300 region as of this writing. The ETH market and the prices had been weak for quite sometime now and we had also mentioned the same in many of our forecasts about how the the prices are likely to be under pressure despite the strong fundamentals of the network mainly due to the fact that it has come under increased scrutiny and competition from other blockchain networks.
BTC Prices Below $6000
Networks like EOS have a functionality and structure quite similar to that of the ETH network and thats why they have been able to openly challenge the market of ETH and this is beginning to eat up the market share of ETH. Also, with loads and loads of ICOs being run on the ETH network and with many of them looking to unwind their positions worth millions of dollars, that has only served to put pressure on the prices even more over the last few weeks. The BTC prices have also corrected below the $6000 region as of this writing and the whole crypto market seems to be under a lot of pressure at this point of time.
There have been no specific fundamentals associated with the fall in the crypto market and in fact, more and more people are talking about the market maturing in due course of time and they are also looking forward to the opportunities that such a maturing market is going to provide to the technologists and the traders as well. So, it is indeed a surprise to see the pressure that the BTC and ETH prices are under though for BTC, the support is nearby at $5800.
Looking ahead to the rest of the day, it would be interesting to see the price action around the support region at $5800 and to see if the region holds the prices for the short term. The bulls need something to give some atleast a bit of momentum going forward and for the battered lot, the first thing that they would like to see is this fall stopping at some point of time.
This article was originally posted on FX Empire