Bears have been taking advantage of the persistent FUD, and as a result, crypto asset prices have been sliding downwards. A day back, both Bitcoin and Ethereum scripted new November lows. In fact, top companies like McDonald’s and Walt Disney flipped Ethereum as the latter’s market cap dropped below the $200 billion threshold.
Read More: McDonald’s, Walt Disney flip Ethereum as its M.Cap slips below $200B
However now, both the top crypto assets have created another not-so-encouraging record. As analyzed in an article earlier today, Bitcoin stooped down to $17.1k, to create a new two-year low. Ethereum, on its part, also registered back-to-back red candles hourly. At press time, the second largest crypto was trading below the psychological $1.3k level, after depreciating by around 13% in 24 hours.
Crucial support comes into play for Ethereum
The destruction could have been far worse for Ethereum. However, its strong support of around $1290 came into play and helped the asset cap its losses. As illustrated below, the said level has rescued the alt several times in the past. Notable instances include February last year, and October, and June this year.
If the current support is lost, and extremely bearish conditions persist, then Ethereum could drop all the way down to $880-$890. Nevertheless, it will get a chance to revive around $1045.
However, if Bitcoin initiates a recovery, then Ethereum can first be expected to head toward $1328 and eventually to the psychological $1.5k mark.
New ‘highs’ attained
Amid price lows being scripted, one may wonder what kind of ‘highs’ has Ethereum created. Well, despite the latest dump, investors continue to add ETH to their stash. Data from the on-chain analytics platform Glassnode revealed that the number of addresses HODLing more than 0.1 coins reached a 3-month high of 6,323,717 on Wednesday.
Parallelly, the number of addresses possessing more than 100 coins also attained a new monthly high of 45,480, indicating that the “buy the dip” phenomenon is currently in play. The same hints toward the long-term conviction of market participants.