Last week, the price of cryptocurrencies rose sharply after it emerged that JP Morgan is planning to launch its own cryptocurrency. The news was big because JP Morgan is one of the biggest banks in the world facilitating more than $6 trillion local and international transactions every day.
JP Morgan updates were followed by another report that said how the biggest oil companies had signed up for Vakt, another blockchain project that aims to simplify transactions in the industry. Other commodity groups like those dealing with agriculture are experimenting on their own blockchain projects as they attempt to simplify operations and boost margins.
The optimism on the currencies faded after Warren Buffet’s interview with CNBC, in which he downplayed the value of cryptocurrencies. Instead, he focused on the value of blockchain and how it would transform the industry. Traders on their part started to think about the impact of Vakt and JP Morgan’s products and how it would affect current cryptocurrencies like Bitcoin and Ethereum. This led to a sharp decline in their price. Yesterday, the two currencies reached lows of $3640 and $124 before paring the losses.
The ETH/USD pair is trading at 135, which is higher than yesterday’s low of 124. On the four-hour chart, the price is slightly lower than the 58-day EMA while the RSI is trading at 47. The Parabolic SAR of average points to a more downward movement while the on-balance volume indicator remains at elevated levels. There is a likelihood that the ETH/USD pair will remain within these levels.
