Crypto Market Mostly Red, Ether Faces Increased Sell-off Pressure 

Crypto Market Mostly Red, Ether Faces Increased Sell-off Pressure 

Crypto markets are trending mostly red for a third day following a downtrend that has persisted for much of 2019.

At the time of writing, Ether and XRP are both over 1.5 percent down on the day. The two coins- the second and third largest cryptocurrencies by market cap respectively- have extended their decline into double figures on the weekly charts.

ETH is exchanging hands just above $127; XRP trades at around $0.18 and LTC at $39.8. Bitcoin has climbed back above $7k with prices at $7,166 at the time of writing.

For Ether, Friday marks a losing streak that extends to a fifth straight day. Ether is now over 12 percent down on the week while XRP leads the decline among the top ten with 14.6 percent. Other top 10 coins are also trading in the red over the same period- Bitcoin Cash (-10.6%), Litecoin (-1%), EOS (-5.79%), Binance Coin (-10.5%) and Bitcoin SV (-8.75%).

But Bitcoin (BTC) has declined the least over the same period. Despite dropping below $7,000 in the week, BTC is now only marginally above 1% in the red.

Ether facing pressure

A downturn in ETH prices could accelerate as fears surface that PlusToken scammers could yet dump their Ether loot on the market. Last week, traders pointed out the possibility of OTC dumps of bitcoin could have contributed to driving prices lower.

Now Ether traders are pointing to a similar trend. On December 19, reportedly $105 million worth of ETH was moved in one large transaction. It bucked a trend observed with BTC trades linked to PlusToken accounts.

Ether has stayed in a downtrend for over two-thirds of November and December. Despite a surge to over $330 in June, sentiment and price for the decentralized platform have dipped to see the coin fall 1.2 percent below its price at the beginning of 2019.

Comparatively, Bitcoin is over 80 percent up on its price value since January 1, 2019. Litecoin has declined a lot in recent months, but it still trades more than 30 percent higher over the same period.

Only XRP among the top three coins has lost more, with its value down more than 40 percent.

Ethereum’s price movement looks even more bearish given sentiment has turned south due to the delayed network upgrades. Ethereum developers are looking to transition the network from a proof-of-work system to a proof-of-stake mechanism. Challenges, however, threaten to impact prices even further.

Featured Image: Shutterstock

Investing is speculative. When investing your capital is at risk. This site is not intended for use in jurisdictions in which the trading or investments described are prohibited and should only be used by such persons and in such ways as are legally permitted. Your investment may not qualify for investor protection in your country or state of residence, so please conduct your own due diligence. This website is free for you to use but we may receive commission from the companies we feature on this site. Click here for more information.