Ethereum’s luck, like many altcoins, is running out. Without the momentum, the rallies are drying up, unable to push through key levels. The same can be witnessed with Bitcoin. Over the past few days, there have been two attacks on the bZx capital where users have exploited Defi apps, leading to losses in a few hundred thousand dollars.
- The same platform exploited twice making it the first ‘hack/exploit’ in 2020. This, among many, is a headwind for ETH.
- Resistance at $287 is a major resistance which is hindering an upward price movement.
- Headwinds could further push the price to $257, last seen 24 hours ago.
One Hour Ethereum Chart
ETH’s showing the formation of an inverted head and shoulder pattern, seen less often. Unlike the usual ones, this inverted head and shoulder are evolving. As seen above, the second right shoulder is yet to be formed. Banking on this move, there are chances for Ethereum to head lower into the zone at $257 or $260.
At press time, the price of ETH at $280 is already facing rejection in the one-hour chart. A rejection here would lead to the formation of the second shoulder. After the formation of which, ETH will push back to $275, and much higher – $287.
Without lady luck aka Bitcoin’s rally, Ethereum is stuck collapsing. After the completion of the second shoulder, similar to the left shoulder, sideways movement can be expected.
Fundamentals play an important role in affecting price. A CEO’s actions affect his companies for the better or the worse, similarly, the attack on Defi ecosystem is like a dent in Ethereum’s reputation. In under two days, two users managed to siphon money exploiting the underwritten protocol and without hacking. This exploit is a callback to the infamous DAO attack. Unlike the DAO attack, this attack is on a much smaller scale and will not cause a chain split.
As always, the momentum shift can cause the price to shatter through the resistance. Cryptocurrency is a volatile ecosystem, blink for a second and one can lose entire funds, get hacked, or win big. However, for now, Ethereum’s downtrend seems to be underway.