Ethereum price was down more than 3% as it broke below the key support level of $350 support on news that the most powerful political leader, President Trump has halted the stimulus deal.
The president had earlier said via his Twitter page; “Nancy Pelosi is asking for $2.4 Trillion Dollars to bail out poorly run, high crime, Democrat States, money that is in no way related to COVID-19. We made a very generous offer of $1.6 Trillion Dollars and, as usual, she is not negotiating in good faith. I am rejecting their request and looking to the future of our Country. I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business.”
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What this means is that global investors would be wary of increasing inflow into risky financial assets like cryptos, global equities in the near term.
Nancy Pelosi is asking for $2.4 Trillion Dollars to bailout poorly run, high crime, Democrat States, money that is in no way related to COVID-19. We made a very generous offer of $1.6 Trillion Dollars and, as usual, she is not negotiating in good faith. I am rejecting their…
— Donald J. Trump (@realDonaldTrump) October 6, 2020
Price analysis: ETH price is testing the $340 support and it remains at a risk of more losses.
- Ethereum price at this report was drafted, traded around $340.92 with a daily trading volume of $11 Billion Ether price is down -3.3% in the last 24 hours.
It has a circulating supply of 110 Million coins and a max supply of ∞ coins.
- Ethereum in recent days failed to breach the $355 resistant price level and dropped by 3%.
- Ether is now trading near the $340 support and it is well below the 100 hourly SMA.
- If it breaks through and ascends to around $350 it might in a matter of weeks reach $400 again, as the momentum on Ethereum based assets, DeFi cryptos maintain momentum.
In addition, Ethereum’s latest on-chain activity, much like the market itself, features a mix of hopeful and cautious signals.
🧐 #Ethereum’s latest on-chain activity, much like the market itself, features a mix of hopeful and cautious signals. Our latest analysis features a look at active deposits, miner behavior updates, $ETH's supply on exchanges, & more. Read our findings! https://t.co/GNGXlWDWOs pic.twitter.com/hZtvgq3J1C
— Santiment (@santimentfeed) October 6, 2020
Also growing popularity of Ethereum based networks and the use of DeFi protocols are both a blessing and a curse.
- The Ethereum network is presently close to reaching its technical limits, as DeFi and Tether are essentially responsible for as many transactions as the network can handle at the moment.
- Ethereum is a cryptocurrency designed for decentralized applications and deployment of smart contracts, which are created and operated without fraud, interruption, control, or interference from a third party.