Ethereum, the second largest cryptocurrency in terms of market capitalization, recorded the lowest price of the year, falling to $246. The price dropped by as much as 17%, including the lowest level since September 2017. In addition, Ethereum's profitability decreased to historically low levels, 0.0243 a dollar of profit per day for 1 M Hash/ s.
While many investors believe that the worst is over, Spencer Bogart from Blockchain Capital says that "pain" may be far from over because there are still hundreds of thousands, if not millions of ETH, which are ready for mass sales on the stock exchanges: "Investors are increasingly disappointed with tokens and ICOs, most of which have been launched at the top of the fame of Ethereum and see that the market is playing with constant downward price pressure"
Ethereum, being a platform for decentralized applications, is ultimately associated with the success of its derivative platforms. Although nothing can be downloaded for one reason, it can not be denied that most of the ETH-based platforms failed in 2018. According to data from the Deadcoins portal, in 2018 more than 1000 cryptocurrency projects have already fallen. Some have failed due to technical incompetence of the team, while the rest are mostly scams and financial pyramids.
Let's now take a look at the ETH/USD technical picture at the H4 time frame. The market has made a new local low at the level of $246.61 and now the price is trying to bounce from the extremely oversold conditions. The next technical resistance is seen at the level of $301, but to reverse the downtrend the bulls would have to push the prices towards the 61% Fibo retracements at the level of 409.89. Any moves below this level will be considered as a temporary pull-back in an ongoin downtrend.