If you’ve been on Crypto Twitter at all, you likely know that Bitcoin hasn’t done all too well over the past day. The leading cryptocurrency is down some 3% on the day after plunging by over $200 within a few minutes’ time.
While already bad enough for bulls, some cryptocurrencies have been hit worst than others. In fact, in the past 24 hours according to CoinMarketCap, second-largest cryptocurrency Ethereum has fallen by over double of that of Bitcoin, tumbling all the way to $132, marking a 7% loss on the day.
Some analysts say that this drop could be a precursor to an even stronger downtrend. Prominent trader “TraderXO” recently noted that the cryptocfurrency is likely on a path to revisit double-digit prices, noting that it remains in no mans’ land with no sembalance of support nearby. He thus noted that his first short target is $115, then $100.
Fundamentals Still Favor Bulls
This bearish analysis comes in spite of a slew of positive developments the project has seen over recent weeks.
Just recently, Tom Jessop, President of Fidelity Investment’s cryptocurrency services division, said to industry outlet The Block that his firm intends to support ETH in the near future.
During the podcast episode with The Block, Jessop said that the firm has “done a lot of work on Ethereum” over recent months, and is looking to add support for the second-largest cryptocurrency by market capitalization within the coming year. The catch: clients of the firm need to show that they demand Ethereum, for Bitcoin, the digital currency with the longest track record, has long been the star of the institutional crypto show due to risk factors.
That’s not the only positive development Ethereum has seen.
Earlier this month, Ethereum developers rolled out the latest iteration of the software, “Istanbul.” This hard fork brings a number of improvements to the chain, including a technical upgrade that allows Ethereum to better interact with another popular altcoin, ZCash. Some say that the Istanbul upgrade will allow the blockchain to scale by hundreds of percent due to second layer applications that can now be built.
Also, reports indicate that the first tokenized property on Ethereum was just sold, marking a positive step forward for the decentralized finance ecosystem.