If Bitcoin was slightly influenced by the ICO ban in China, the news has impacted ETH directly. Just in a few hours, the price dropped from $375 to $280. Very strong downfall stopped at $280 resistance zone, that had been in place since the beginning of August.
Generally, the news from China has been overvalued by the market. The same as in the SEC case, the recovery has been quite fast.
Current situation and scenarios:
- $280 support zones have remained. If there’s more negative news, this level is the most important.
- In September, many new ETH announcements are expected. The closer the Metropolis release, the more news buzz we’ll see.
- There’s global $395 resistance zone and $395 high tests look very logical.
- The volume of transactions and number of ICOs continues to grow.
The current situation in ETH is fine, a strong downfall has been bought out and move towards $395 goal has continued. The market is growing easily, as there is no strong resistance from sellers.
If nothing out of the ordinary happens, we will see $395 tests closer to the middle of the month.