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  • ETH/USD is recovering from the slump, strong resistance is created by the intraday high of $146.00.
  • Ethereum-based DeFi platforms are hit by the market crash. 

At the time of writing, Ethereum (ETH) is changing hands at $127.00. The second digital coin with the current market value dropped below $100 for the first time since December 2018 but managed to regain the ground amid technical correction. Ethereum’s market capitalization is registered at $13.8 billion, while an average daily trading volume is nearly $30 million. The coin has gained over 14% since the beginning of the day, though it is still down 30% on a day-to-day basis.

ETH/USD: Technical picture

Only a dismal 4% of Ethereum addresses are in the money now. This is a dismal statistic that means that nearly all ETH holders are losing money at a current price. Moreover, over 600k accounts with over 7 million ETH on them have their breakeven point at $117.00. It means that a sustainable price move below this barrier may trigger another massive sell-off towards $100.00.

On the intraday charts, ETH/USD is hovering around the middle line of 1-hour Bollinger Band currently at $126.70. Once it is cleared, the recovery may be extended towards $130.00 and $140.00. The intraday high registered at $146.00 may limit the recovery in the short run, though, if it is out of the way, ETH bulls will set the eyes at psychological $150.00.

ETH/USD 1-hour

The flash-crash caused Ethereum network overload

The increased activity on Ethereum blockchain resulted in the network overload. Users had to wait 44 minutes on average for their transaction confirmation. The delay was confirmed by Binance CEO Chanpeng Zhao.

Ethereum-based DeFi (Decentralized Finance) platforms also experienced performance issues that triggered massive position liquidations and exacerbated the sell-off. Users of DeFi giant MakerDAO could not change their collateral, which caused position liquidation. The team even contemplated a shutdown as an anti-crisis measure. 
 

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