Ethereum Still Far Weaker Due to PlusToken Scammers Dumping

December 20, 2019 1:30 AM UTC

Ethereum has been struggling for a while now, however, recently the digital asset has been facing even bigger problems like the PlusToken scam.

According to reports, PlusToken, a Chinese Ponzi scheme managed to obtain hundreds of thousands of Ethereum coins and they are dumping them continuously.

Recently, they moved around $105 million in Ethereum tokens to an unknown wallet which caused panic among Ethereum investors and made the digital asset plummet.

This could generate fear in the long term as scammers can keep shuffling the coins back and forth only causing fear among investors. They could even use the coins to stake them when Ethereum shifts towards a PoS consensus algorithm.

Long-Term Outlook for Ethereum

Looking at the weekly chart, Ethereum appears really week and in a huge downtrend that started back in June 2019. The bulls have been unable to recover ever since and the price of Ethereum has almost hit 2019 lows that were set in January.

The monthly chart does look better but it’s starting to be in danger too. The bulls have been looking for a higher low compared to $80.6, however, at this point, the digital asset might just set a lower low if selling pressure continues.

The MACD is slowly shifting towards a bull cross but it needs a bit more momentum. Trading volume has been slowly decreasing every single month.

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