The price of Ethereum's native token Ether (ETH) crept lower Friday after China extended its crackdown on cryptocurrencies by deeming their transactions to be "illegal."
"Financial institutions and non-bank payment institutions cannot offer services to activities and operations related to virtual currencies," the People's Bank of China said in a statement on its website Friday, adding that online crypto services to Chinese residents offered by offshore exchanges are also "illegal financial activities."
Bids for the ETH/USD pair dropped by up to 13.30% to $2,735 in response. At its week-to-date (WTD) high, traders paid as much as $3,346 for a single Ether token but the price fell to as low as $2,651 after a tumult in China's heavily indebted property sector hit crypto markets.ETH/USD daily price chart. Source: TradingView.com
As a result, Bitcoin (BTC), the world's leading cryptocurrency, also fell from its WTD high of $47,358 to as low as $2,651. Meanwhile, its prices fell by 9.38% on Friday—a massive intraday decline but lower than Ether's drop in the same period.
So it appears that traders decided to dump the digital assets that posted better long-term profits than Bitcoin. For instance, even after the latest declines, ETH/USD's year-to-date (YTD) gains came out to be above 280%. In contrast, Bitcoin's YTD profits were a little over 40%.ETH/BTC falls to multi-week lows
Ether also underperformed directly against Bitcoin, with the ETH/BTC pair falling to 0.066 BTC for the first time in more than three weeks. At its yearly high, the pair traded at 0.079 BTC.ETH/BTC daily price chart. Source: TradingView.com
Nonetheless, Ethereum charts suggest that Ether could grow stronger against Bitcoin in the coming sessions. This is due mainly to a Bull Flag formation in ETH/BTC market, a bullish continuation pattern that surfaces when prices consolidate lower/sideways (FLAG) following a strong uptrend (FLAGPOLE).
A Bull Fl...