Bitcoin and Ethereum are traded positively after a continuous three-week decline

After yesterday's impressive drop, when the digital currency Ether decreased by more than 6 percent in 24 hours, the market is experiencing some recovery after previous losses today. Shortly before the start of US trading session, the Ether is traded at around $542 for one digital coin, growing by 6% on daily basis. Thus, yesterday's decline was short-term and probably was caused not only by the activation of stop orders under a significant support level, as we initially thought.

It is very likely that yesterday's large-scale sell-off was the result of massive transfer of a digital currency to USD dollars after a series or one large ICO. After the launch of ICO, and the exchange of new tokens to Ether, the developers of the new project must exchange the collected Ether for fiat money for further financing and development of new project.

Most large ICO projects tend to eliminate or diversify their ethers on crypto-exchange such as Bitfinex, causing a domino effect for other cryptocurrencies sending them into the red zone.

It is characteristic that the decline in the prices caused by such actions is of a short-term nature, and the market wins all the losses suffered the next day.

Thus, today the market shows positive signals. However Ether bulls have yet to gain a foothold above the significant level of $550, recent support, and now the new and the nearest level of resistance. Today’s close above this mark will confirm the false yesterday's breakdown and indicate the presence of buyers in the market.

There are also positive trends in the Bitcoin market. After reaching recent lows at $7020-$7050, the market gained in the $7440 zone. The nearest resistance is in the $7630-$7760 zone.

The total capitalization of the cryptocurrency market increased to 323 billion dollars.

FortFS