The Ethereum price was in the spotlight on Friday as China’s hawkish tone on cryptocurrencies left markets in jitters. ETC has been among the poor-performing cryptocurrencies in the global crypto market. The total volume of ETC traded in the last 24 hours continues has continued declining as many traders join high-yielding coins. Among the best performing altcoins include Avalanche, Cosmos, and Celo.
Crypto Crackdown
In the last seven days, the ETC price has declined more than 19% and almost 10% in the last 24 hours. The coin’s total market capitalization has declined almost 10% in the last 24 hours to $326 billion. Nonetheless, Ethereum remains the second-largest digital currency in the world.
The overall crypto market has been in the red for the past few days. According to data by CoinMarketCap, the global crypto market capitalization has slipped more than 6% in the last 24 hours to $1.83 trillion. Bitcoin’s failed attempt to move past the crucial level of $45,000 has dampened the crypto market sentiment.
Earlier today, the People’s Bank of China said in a Q&A that all crypto-related activities are illegal. The PBOC stated strictly prohibited services offering trading, order matching, or derivatives for virtual coins. It also stated that overseas exchanges were illegal.
This followed Beijing’s sharp crackdown on cryptocurrencies earlier this year. The Chinese government was ambitious to stamp out digital currency mining, which led to a sharp nosedive of Bitcoin’s price to $30,000.
Ethereum Price Technical Analysis
For the past three weeks, the Ethereum price has been on a bumpy ride. China’s crackdown on crypto-related activities is not making things better for the coin’s price.
On the daily chart, it is trading below the 25-day and 50-day exponential moving averages. Its RSI is weak at 39, which is 9 points closer to the oversold region.
Therefore, with the current circumstances, the ETC price is likely to extend its bear run. The key support at $2,430.65 is the next logical target.
