The number two cryptocurrency by market cap, Ethereum, just experienced a massive dump alongside many other major crypto assets, including Bitcoin and the rest of its altcoin brethren.
Is the 2020 crypto rally finally finished, or is this just another opportunity to buy the dip across the crypto market before further upside in the days ahead.
Ethereum Drops to $250 in Crypto Market Mayhem
Ethereum just lost as much as 10% of its value in a matter of just one hour, as the smart-contract focused altcoin’s rally may finally be finished.
The cryptocurrency has been rallying since the start of 2020 and had been up to over 100% at recent highs since the year first began.
But the number two cryptocurrency by market cap has struggling to set a new high, and after this latest collapse that wiped out 10% from the value of Ethereum, it’s starting to look like the crypto bull market is taking a quick break.
In a matter of an hour, Ethereum fell from highs around $286 to as low as $250, before finding support.
The current local high of the entire rally is set at $290, failing to reach its 2019 high of $364.
Resistance from $285 all the way up to $300 may have proven to be too powerful for bulls to break through.
Bearish crypto traders may have the high volume, top-like reversal they were looking for, however, the drop failed has thus far failed to set a lower low on daily timeframes.
On Sunday, Ethereum dropped to $236 before rebounding back toward local highs.
But the rally has thus far failed to hold and was rejected back down to find support.
Is the Crypto Rally of 2020 Over?
At the time of this writing, $250 is holding strong, and Ethereum has already rebounded, but additional downside cannot be ruled out.
After over 60 days of uptrend and 100% gains, a retracement isn’t out of the question, although some crypto analysts are claiming that it make take weeks or months to occur.
Many indicators confirm that at a new crypto bull market is here, however, that doesn’t mean massive crashes still can’t cut rallies down to size at every turn.
Related Reading | Crypto Market Crash: This Technical Structure Puts End to Uptrend
This latest turn for Ethereum could result in new lows being set, or if a bull market is in effect, dips will be bought with fury and speed, and in no time at all, Ethereum will be back to setting new locals highs.