Ethereum (ETH) price analysis: ETH/USD drops under $270, bears take revenge
|- A move below $270.00 has darkened the technical picture.
- The nearest strong support for the coin is seen at $260.
Ethereum (ETH) attempted to recover above hit $270 on Tuesday, failed to maintain the upside movement. The second largest cryptocurrency with the current market capitalization of $28.6 billion is mostly unchanged in recent 24 hours and down 2.5% since the beginning of Tuesday. An average daily trading volume for ETH is registered at $5.7 billion, which is much lower from $9.7 billion on Monday.
Looking technically, ETH/USD broke below $267.40 support created by the lower boundary of 1-hour Bollinger Band and SMA100 (Simple Moving Average). This development has darkened the short-term technical picture, though, ETH bulls have a chance to win back at psychological $260. This barrier is likely to stop the sell-off; however, once it is cleared, the upside is likely to gain traction with the next focus on $258.50 (SMA50, 4-hour) and $255.50 (SMA200, 4-hour). A sustainable move below this handle will trigger more selling and push the price down to $230 (SMA50 - Simple Moving Average, daily chart).
On the upside, the recovery is capped $270, followed by $274.30 (the intraday high). A sustainable move above this handle will open up the way towards the next bullish aim of $279.00 (upper boundary of 1-hour Bollinger Band). Critical resistance levels also await ETH bulls at $280.00 and $284 (the upper edge of 1-week Bollinger Band) and the recent high of $288.
ETH/USD, 4-hour chart
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