Ethereum Trade Idea – ETH/USD Violates Downward Trendline

ETH/USD closed at $2094.28 after placing a high of $2319.10 and a low of $2014.34. Ether dropped to its lowest level since April 8 and continued its bearish streak for the third consecutive session on Sunday. The latest decline in Ethereum prices was driven by the statement issued by the Chinese State Council’s Financial Stability and Development Committee that it will crack down on Bitcoin mining and trading activities as a part of efforts to fend off financial risks.

This statement came in just days after three Chinese industry bodies tightened a ban on banks and payment companies to stop providing trading services for cryptocurrencies. The Chinese State Council issued a notice that demanded reduced power consumption in an industrial area where many bitcoin mining facilities operate. This was the first attempt by the Chinese council to take a step against bitcoin mining. BITCOIN fell by 35% within a week following this news, combined with the negative comments from Elon Musk. The declining bitcoin prices added to pressure on the whole cryptocurrency market and dragged other cryptocurrencies with it, including Ethereum.