On August 13, the entire cryptocurrency market dropped to US$218.4 billion, according to CoinMarketCap. The recent week was a tough one for practically all cryptocurrency investors, except for those who were trading Zcash against Ethereum. This cross pair managed to add almost 13% in value.
Meanwhile, ETH was among the digital assets that suffered the most severe loss. During the recent week, it decreased by more than 20%, while Bitcoin has managed to become the dominant cryptocurrency in the world market, receiving a 50% market share for the first time in 2018.
It looks like investors are less and less willing to engage in the trades with high risk and high returns. The confidence in the short-term market trend is continually decreasing.
Ethereum Follows ICO Bubble Road
Since the start of August, ETH has been leading the race of the worst performers among cryptocurrencies, despite its positive momentum since the beginning of the year. The chances are high that the recent drop of the cryptocurrency can be attributed to the ICOs and blockchain projects decrease. Most of them were Ethereum based, which supported the demand for this digital asset during the recent year. However, the hype is gone, and the speculators are leaving the market dumping ETH to new lows.
At this point, it looks like Ethereum is ready to bottom out at the lower price range with good chances of range bound moves during the nearest weeks, before another splash of interest that will initiate a strong rally.
Once ETH sustains above the 50-day SMA, it will be the confirmation of positive sentiment. Given the RSI in oversold territory, the cryptocurrency has the potential to bounce from strong support level around $290 with initial target at $400 and further rise to the $470 area by the end of August.