Ethereum market overview: ETH/USD rebound looms as bears step aside
|- The building bullish momentum is supported by the 100 SMA holding at $230.
- Traders expecting a struggle at $240, $260 support turned resistance, and the supply zone $280.
Ethereum bulls have caused havoc for the traders who had anticipated that the crypto will make an incredible journey breaking above $300. Instead, ETH/USD reversed the trend and turned immediately turned from being the best performing altcoin on the market this to the worst hit coins. Ethereum lost $57 in less than 24 hours from the yearly highs posted at $281 to the intraday low at $224.
Following the incredible performance since Monday, Ethereum investors run to cash in on the profits. A pullback is usually expected after a surge and especially if strong support fails to form. However, pullbacks are not always bad for the asset as it can be used to confirm the bull rally. For example, after Ethereum formed a low at $224, we can see a correction that has already spiked above $230 to the current value at $236.
The building bullish momentum is supported by the 100 Simple Moving Average (SMA) at $230 while the 200 SMA is positioning itself to offer support at around $206.92. The shorter term 100 SMA being above the 200 SMA shows that the buyers still have the energy to defend the support at $220. As far as upside correction is concerned traders can expect a struggle at $240 $260 and the supply zone $280. Technical signals show that the price is trending sideways in the sessions to come between $220 and $240.
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.