Ethereum (ETH) 13 flash crashes 13% to $2,100 – What is the significance – Analytics Insight

Analytics Insight
Top 10 Cryptocurrencies to Buy in 2024
Will AI Chatbots Be the End of Human Customer Service?
Anthony Scaramucci Foresees New ATH for Bitcoin (BTC); Arbitrum (ARB) and Borroe Finance ($ROE) Eye 100% Upside
IIT vs IIM for Artificial Intelligence and Machine Learning
The Top 10 Data Science Leaders You Should Follow in 2023
40-under-40-innovators-of-2023
The 10 Most Influential CTO’s To Watch in 2023
The 10 Most Influential CISOs to Watch in 2023
The Ethereum price is exchanging hands at $2,237 as of 1:30 a.m., down 5.78% over the last 24 hours.
ETH experienced a 13% drop on Jan. 3 as its price dropped from a high of $2,385 to $2,100 within two hours, levels last seen in early December 2023.
The flash downswing resulted in liquidations of more than $100,000 worth of ETH futures, which were leveraged bets on the price increase.
The downswing has left traders debating the significance of the price correction with the Decilizer crypto community acknowledging that ETH had the most losses.
BIG DAY FOR $BTC 🔥
Grayscale is in talks with JPMorgan & Goldman Sachs for its Bitcoin ETF. Meanwhile, #Crypto hack losses dropped 51% in 2023, but Ethereum $ETH saw the most losses.
Security measures are improving, but the industry must stay vigilant. 🚨#Bitcoin #BitcoinETF pic.twitter.com/ZCFafTZTFG

Is this the end of the bullish momentum for the largest altcoin by market capitalization? Note that Ether has tried without success to break above the $2,400 thrice over the last month alone. This is also the third time the smart contract’s token dropped toward the $2,000 zone over the same period.
The Jan. 3 marketwide sell-off appears to be triggered by an analysis report published by the digital assets platform Matrixport. The firm asserted that the SEC plans to reject the spot Bitcoin ETFs. Crypto prices crashed within an hour of the report’s release.
The cause of the 13% flash crash on Jan. 3 may never be definitively determined. This does not necessarily invalidate Ether’s bull run or make gains above the $2,400 resistance less likely before the ETF decision.
For now, the bulls have to focus on reclaiming the $2,300 level. The long lower wick on Wednesday’s candlestick suggests that the buyers are aggressively defending teh $2,000 support level.
Increased buying from the current level could see ETH scale higher with the first target being a return to $2,300 and later the equal highs around $2,300. If this happens, it will indicate the ability of the buyers to confront resistance from the $2,400 major resistance.
ETH/USD Daily ChartSupporting this bullish outlook was the upward-facing moving averages. Ether also sat on strong support on the downside. These were areas defined by the 50-day exponential moving average (EMA) at $2,182, the $2,000 psychological level, embraced by the 100-day EMA, and the 200-day EMA at $1,930.
The relative strength index (RSI) was also facing upwards, a suggestion that day traders had begun re-entering the market.
On the downside, failure to climb back above $2,300 would imply the inability of the buyers to sustain the uptrend. The bears would then pull the price toward the 50-day with the downside probably being capped around the $2,000 buyer congestion zone.
Disclaimer: Any financial and crypto market information given on Analytics Insight are sponsored articles, written for informational purpose only and is not an investment advice. The readers are further advised that Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Conduct your own research by contacting financial experts before making any investment decisions. The decision to read hereinafter is purely a matter of choice and shall be construed as an express undertaking/guarantee in favour of Analytics Insight of being absolved from any/ all potential legal action, or enforceable claims. We do not represent nor own any cryptocurrency, any complaints, abuse or concerns with regards to the information provided shall be immediately informed here.
Analytics Insight® is an influential platform dedicated to insights, trends, and opinion from the world of data-driven technologies. It monitors developments, recognition, and achievements made by Artificial Intelligence, Big Data and Analytics companies across the globe.
Disclaimer: Any financial and crypto market information given on Analytics Insight is written for informational purpose only and is not an investment advice. Conduct your own research by contacting financial experts before making any investment decisions, more information here.

source