Ethereum price analysis: ETH/USD back above $500, but recovery stalled
|- Ethereum network on the verge of important upgrades.
- ETH/USD flirts with $500, unable to move too far from it.
ETH/USD is trading at $516 at the time of writing, unchanged since the beginning of the day and 45 higher in recent 24 hours. After a spike late on Monday, the second largest digital coin entered a consolidation phase marginally above critical $500.00 handle. Current market capitalization is $51.8B and average trading volumes $1.5B, unchanged since Monday. ETH/USD represents 24% of all ETH transactions with the coin most actively traded at Bitfinex.
Meanwhile, big changes are coming to Ethereum network, where the developers are about to introduce Casper protocol and sharding, possibly within one update. Casper will increase the network efficiency, while sharding solves scalability issues, increasing the number of processed transactions.
Ethereum technical picture
ETH/USD failed to gain strong bullish momentum above critical $500 level, which might mean that the downside may be resumed soon. The next local resistance is seen at $530. This area has capped the recovey attempts since June 14. If it is cleared, the upside may be extended towards $550 with 100-SMA (4-hour chart) currently at $549. On the downside, the support is created by $500-$490 area with 200-SMA at $583. Once it is broken, the selling pressure will take the coin to $460 (June 13 low).
ETH/USD, 4-hour 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.