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Ethereum (ETH) Falls Below Important Support Level, Drops Below Critical $1,500 Threshold

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Mon, 13/02/2023 - 17:00
Ethereum (ETH) Falls Below Important Support Level, Drops Below Critical $1,500 Threshold
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The blockchain-based gold token PAXG has taken a significant hit amid the regulatory clampdown of its parent company, Paxos, causing market-wide correction. PAXG is backed 1:1 with physical gold, making it a popular investment option among individuals looking to invest in gold without the hassle of storing physical bars or coins. The token is audited monthly and regulated by the New York State Department of Financial Services.

Ethereum faces losses despite network growth

Ethereum, one of the largest and most influential cryptocurrencies, has recently dropped below a key support level, reflected in its 50-day moving average, that was expected to act as a guideline for the asset's upward trajectory. Despite rising network activity and burn rate, Ethereum could not maintain its high price level and instead slid down. As of press time, ETH is trading at $1,483.

Article image
Source: TradingView

The 50-day moving average is a technical indicator used by many market participants to help determine the overall trend of an asset. In Ethereum's case, it was expected to act as support, providing a cushion for the cryptocurrency as it moved higher. However, this has not been the case, as ETH has fallen below this key level, potentially putting further downward pressure on the asset.

It is worth noting that Ethereum has seen significant growth in network activity, with the number of daily transactions reaching new highs. Additionally, the burn rate of Ethereum has been on the rise, which is typically seen as a positive sign for the asset.

Paxos assets' discount rises

At a certain point in time, the discount on PAXG extended to around 5%. However, the price of the token quickly rebounded following the dip. This suggests that despite regulatory uncertainty, Paxos will most likely defend the peg with the value of the real gold. For investors looking for a secure store of value, PAXG provides a unique opportunity to own gold in a convenient, digital form.

Article image
Source: TradingView

Paxos has been at the forefront of the regulatory crackdown, and the company has taken steps to ensure its operations are in compliance with all relevant laws and regulations. Despite the challenges posed by the SEC, Paxos remains committed to developing innovative solutions that allow investors to access gold and other precious metals in a secure, convenient and accessible manner.

Shiba Inu drops to lows again

Shiba Inu, the meme-inspired cryptocurrency, was recently denied at $0.0000135, which was its local resistance level. Despite touching this level, the price of SHIB swiftly dropped back to the price level we saw on Feb. 9. The drop in price was a disappointment to many Shiba Inu investors, who had hoped to see the cryptocurrency make substantial gains.

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The golden cross signal, a bullish crossover pattern, occurs when a short-term moving average crosses above a longer-term moving average and is often seen as a sign of a potential trend reversal. In this case, Shiba Inu needed to gain just a few percent more to deliver a prominent golden cross signal that would have likely launched it upward.

However, despite the setback, many Shiba Inu supporters remain optimistic about the future of the cryptocurrency. The meme-inspired token has been one of the hottest cryptocurrencies on the market over the past few weeks following a massive 70% gain since the beginning of the recovery in January.

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