ETH/USD has declined sharply after hitting 13.50 levels and has broken below 200-day MA. It is currently trading at 11.66 levels (Kraken).

On 22 September 2016, Ethereum announced that it was under distributed denial of service attack (DDoS), which caused slowing down of the network. In an article, Tuur Demeester, Editor in Chief at Adamant Research, said that he is concerned that “a number of risks and fundamental issues are being overlooked in bootstrapping this ambitious project [Ethereum]”, adding that “[it] needs to undergo a big overhaul, and at worst needs to be abandoned entirely, to prevent more intellectual and financial capital to be wasted in the pursuit of impossible goals”.

Gavin Wood, founder of Ethcore, said that the protocol is flawed and called for a reparatory hard-fork as soon as possible. He said:

“[T]he protocol is fundamentally flawed and will need to be fixed in a reparatory hard-fork, the sooner the deployment of which the better. In principle, once the protocol is fixed, this suggests that we can probably eek out a substantial performance gain from the World Computer (perhaps 10x) simply by refining the gas metering system and optimising the faster clients to get into the same comfort range that Parity enjoys.”

To fix recent DoS attack, new Geth v1.4.16 “Dear Diary” has been released. However, Ethereum price continues moving south. Both long- and short-term have turned bearish for the pair.

Ichimoku analysis of daily chart:

Tenkan Sen: 12.70

Kijun Sen: 13.13

Trend reversal: 12.21 (90 EMA)

On the upside, the pair faces immediate resistance at 11.91 levels (100-DMA) and a break above would see the pair testing 12.21 (90 EMA)/ 13.11 (21-DMA). On the other hand, support is seen at 11.55 (161.8% retracement of 12.30 and 13.50) and a break below would target 11.11 (Ichimoku cloud)/ 10.65 (August 19 low).