Ethereum price is under severe selling pressure after the markets close. ETHUSD is now down 8.5% at 2748 hitting the daily low and the lowest level since August 6.
In Wall Street, the major indices ended at the daily low with Dow Jones and S&P 500 turning red after spending the entire trading session in positive territory. Investors fear that the liquidity crisis at Chinese real estate developers Sinic and Evergrande would lead to global contagion.
The sell-off in cryptocurrencies accelerates after the stock markets close. Bitcoin as of writing is 5.72% lower at 40511, Litecoin is 4.60% lower at 149.81 and Ripple is 4.93% lower at 0.8741. Cardano is 4.61% lower at 1.982.
J.P. Morgan analysts claimed that Ethereum (ETHUSD) is trading well above its fair value, based on Ethereum’s network activity and rising concerns about competition with other DeFi platforms. Strategist Panigirtzoglou, said that ETH fair value is around $1,500.
Ethereum price breached yesterday below the 50 day moving average while today is approaching the 100-day moving average at 3717. A break below that support could attract more sellers targeting the next support at the 200-day moving average around 2588.