Ethereum is back in the $300s for the first time since April 10, 2018.
The bears are back. The SEC’s delay on the VanEck Bitcoin ETF (VanEck SolidX Bitcoin Trust) to September 30, 2018 to make an approval or disapproval on a CBOE rule change triggered a drop-off in cryptocurrencies today. Some analysts expect the rule change to be delayed further, all the way to December 29, 2018. This means that if the ETF were to be available to the public, it would be in 2019. However, a crypto-ETF alone is not going to make-or-break a cryptocurrency, it is bureaucratic and establishment acceptance or rejection. What do those in power have to gain?
The Ethereum charts tell the story as the price dropped 9.5% in just four hours. The most intriguing part as seen below on an Hourly Chart, the price never had the momentum to get back to the $410s.
The price smashed through quarterly lows and was not too far from 2018 Lows. The nearest Support Zone only a 1 Hour Chart begins at $359.92 and the bottom of the Support Zone is the 2018 Low.
Since May 4, 2018, Ethereum has lost significant value against the U.S. Dollar, 52.5%. This has been a very cruel Summer for Ethereum.
The thought of a comeback for the currency after being squashed in value by 72% from its all-time highs in a span of two months was chopped down to size once again.
Hypothetically, this could play out:
The price could once again bounce back in September, but it could end up being unable to get out of the $618 Resistance Zone and then make a considerable drop to brand new lows with the possible saving grace for HODLers and bulls being regulator acceptance as opposed to hostility.
At this time, it does seem like Ethereum is somewhat more likely to make a bullish comeback (at least in the short-term) rather than drop below the $289 Support Zone. Challenging the $474 Resistance Zone does seem like a more logical response to testing 2018 Lows and providing an opportunity for a descending triangle to form just when the market picks up in September. Any good news will bring an overreaction from the markets and a surge upward, which would make ETHUSD a bargain, especially since Ethereum may soon be considered oversold.