Ethereum (ETH) price analysis: ETH/USD on retreat after Sunday’s growth
|- ETH/USD has been rangebound with bearish bias after a steady growth on the weekend.
- The nearest strong resistance for the coin is seen at $278.
Ethereum (ETH) hit $279 on Sunday only to retread below $270 by the time of writing. The second largest cryptocurrency with the current market capitalization of $28.7 billion has lost nearly 1% of its value in recent 24 hours and stayed unchanged since the beginning of Monday. An average daily trading volume for ETH is registered at $9.7 billion, which is much higher from the long-term figures.
Looking technically, ETH/USD recovery is capped by the upper boundary of 1-day Bollinger Band (currently, at $278.73). This barrier stopped the upside on Sunday and triggered the downside correction. Once it is cleared, the bullish trend is likely to gain traction with the next focus on $280.00 and $284 (the upper boundary of 1-week Bollinger Band) and the recent high of $288. That’s where some profit taking on speculative longs may trigger the downside correction before another bullish leg towards $300.
On the downside, the coin is now supported by $256. This barrier is created by the middle line of the 1-day Bollinger Band and closely followed by a series of strong technical levels clustered around $254. They include SMA100 (Simple Moving Average), SMA200 and SMA50 on a 4-hour timeframe. Once it is cleared, the sell-off may be extended towards $252.00 (lower boundary of 4-hour Bollinger Band) A sustainable move below this handle will trigger more selling and push the price down to $230 (SMA50 - Simple Moving Average, daily chart).
ETH/USD, 1-day chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.