Bears had demonstrated their absolute dominance over the cryptocurrency market for several days. Ethereum has also followed bitcoin in recent days and has seen a sharp decline. The crypto has recovered in the past 24 hours and has again climbed above $350.
While the cryptocurrency is experiencing such a strong retracement, analysts are now trying to gauge what is next for the damaged crypto market.
Josh Olszewicz: “We are at a critical point. The fall can get deeper.”
Brave New Coin analyst Josh Olszewicz shared the chart below yesterday. According to Olszewics, if crypto fails to bounce here, it may face a deeper correction around $280 and $240.
Meanwhile, ETH leads the rest of the cryptocurrency market. The fate of ETH concerns the fate of the entire cryptocurrency market, especially given that almost all of the activity of the DeFi industry takes place on the ethereum network. Maybe as much as bitcoin…
This means that a possible decline in the ethereum price could trigger more negativity in bitcoin and then altcoins.
Ethereum needs a solution ASAP
Ethereum’s network density is reaching a higher point every day. At some point last week, an average user of the blockchain was spending $50 on a single transaction. Although transaction fees have dropped close to 30 percent today, such volatility is not a good sign.
There are some critics who say that such an increase in transaction fees means that ethereum has failed and was overtaken by blockchain competitors. However, the year 2021 will be much more decisive because ETH 2.0 can change the entire system.
So where do you think ethereum is headed? Share your comments with us below.