Ethereum-Hype already over?
The long-awaited launch of the ETH Beacon Chain was considered one of the biggest highlights in the crypto year 2020. With the initiated change from Proof of Work to Prook of Stake, Ethereum will become the biggest hope of Altcoin fans. However, according to the news, the Smart Contract Coin is rapidly falling below the important 600 USD mark. Is the dump a classic “sell the news” behavior of investors or is it once again due to Bitcoin? We take a look at the current market situation.
Bitcoin in the spotlight
The bulls continue to attack the USD 19000 mark, which is proving to be a stubborn barrier. At the time of this article, the first mover is at a rate of 19075 USD. Due to the high volatility, we cannot speak of the 19 k USD mark mutating into a new support line at the moment. Again and again the bears were able to put the aggressive BTC bulls in their place during the course of the day. The pressure of sales is enormous at the current level and the fear of rapid price collapses is spreading. So it is no wonder that investors are looking very closely at the “digital gold” on Tuesday. As a result, the hype about Ethereum 2.0 fizzles out in the background.
Ethereum remains in the shadow
Currently, approximately USD 353 billion of the total market capitalization (approx. USD 566 billion) is invested in BTC, resulting in a BTC Dominance Index of 62.3 %. Accordingly, the alternative assets share market shares worth approx. USD 214 billion among themselves. Ethereum (approx. USD 68 billion) ranks 2nd in the crypto charts without any risk. However, the market cap of the Smart Contract-Coin is “only” one fifth of the BTC cap. Although experts are talking about the year of the DeFi-Coins and numerous use cases are already running on the ETH block chain, Bitcoin is undisputedly in the spotlight. Over the past few months, Bitcoin has earned a reputation as a crisis-resistant “Store of Value” and has aroused the interest of the mainstream.
Current Ethereum course
Ethereum falls below the important USD 600 mark on Tuesday. The most famous Altcoin reaches an interim low of 560 USD. However, worried investors are likely to breathe a sigh of relief in the evening, as the signs are pointing to recovery. ETH is currently trading at USD 595.62. From a bullish perspective, the next resistance levels are USD 600 and USD 620. On the downside, the trend lines at USD 580 and USD 560 are important. Many experts regard the 8% dump of the morning as a short-term “sell the news” behavior, which can by no means be attributed to teething problems in the Beacon Chain.
What are the alts doing?
The alternative assets are having a quiet Wednesday. Ripple (- USD 0.98) is holding above the important USD 0.60 mark. Currently the “bitcoin of the banks” is at a rate of 0.62 USD. Further down the line, Polkadot manages the biggest daily gain in the top 20 with an uptrend of + 5.91 %, while there is little to gain for Stellar (- 2.67 %), Tezos (- 2.01 %) and BSV (- 1.81 %).