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Price collapse, Ethereum drops to its 2018 lows
Price collapse, Ethereum drops to its 2018 lows
Trading

Price collapse, Ethereum drops to its 2018 lows

By Federico Izzi - 21 Nov 2018

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Yesterday was one of the worst days of the year due to an important return of volatility that hasn’t been so strong since the beginning of the year. The collapse of the price of Ethereum was of high importance, reaching the price of $130, a value that had not been seen since last September.

The price of bitcoin has also caused negative emotions with fluctuations ranging from -10% yesterday morning, just after 9 am (CET), to a +10% marked during the early afternoon.

Volatility is back: Ethereum and Bitcoin among the worst performances

This crypto volatility is an indication of the strong emotions experienced by operators and of the strong coverings both upwards and downwards. Usually the next day after these important market movements conclusions are drawn and in fact, this morning there were some green signs among the first 20 cryptocurrencies.

Unfortunately, however, in the afternoon the only one to remain with a positive sign is the stable coin MakerDao (DAI) which marks an increase of +13%.

Finding comfort after drops of even 30% is not easy, but these periods continue to require cold blood and indicate that inexperienced operators should stay away from entering this market.

These periods, however, give markets and operators the opportunity to find a bottom area from which to start buying again.

But the downturn is still ongoing and this afternoon we are mostly covered in red.

Certainly bitcoin is the reference point to follow, but the market capitalization indicates that the whole sector is going through a period of great suffering.

The only one that gives signs that are not entirely negative is – looking at the daily closures – Ripple (XRP), which yesterday tried to climb to 50 cents of a dollar and is now around 46 cents, remaining far from the lows of last summer thanks to the rise of last September when it tripled in value.

Ethereum and Ripple prices in comparison

Ethereum suffered a collapse of prices, updating its historic lows of 2018, returning to $130, levels of September 2017. Because of this decline, ETH has lost its second place among the most capitalized cryptocurrencies for a week now, leaving the place to Ripple.

This is another sign of weakness of the Ethereum project which, however, at the beginning of 2017 had seen a better performance than that of bitcoin.

The total capitalization of the crypto market falls to the lowest levels of 2018. It does not exceed 140 billion dollars, losing 80 billion in just over a month.

This demonstrates the moment of general crisis of the market.

These signals, however, must not adversely affect the operators, who, instead, should only try to be patient. What could happen is an upward reaction, even violent: sudden changes in trends are frequent in the crypto world.

Federico Izzi
Federico Izzi

Financial analyst and independent #trader – S.I.A.T. & Assob.it partner. He operates actively on stock and derivatives markets (futures and options) since 1997. A precursor of cyclic-volumetric analysis he is known for having identified the most important upward and downward movements in the financial markets of recent years. He participates annually as a speaker at the ITForum in Rimini since the 2010 edition and InvestingRoma and Napoli since the first edition of 2015. He is a guest and market expert on the "Trading Room" and "Market Driver" broadcasts of Class CNBC, Borsa Diretta.tv and on the evening news of Traderlink. Since July 2017 he is a permanent guest on LeFonti.TV, the only weekly national space dedicated to cryptocurrencies alongside the most important international experts in the field. He was interviewed as a cryptocurrency expert for Forbes Italia, Panorama, StartupItalia and DonnaModerna. He was recognized as the first Italian technical analyst to have published the first secular cyclic analysis on Bitcoin. Periodically publishes articles on ITForum News, Sole24Ore, MILANOFINANZA, TrendOnLine and Wall Street Italy. Federico Izzi is... "Zio Romolo".

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