Ethereum Price Analysis: ETH/USD tests SMA100 weekly for the first time since 2018
|Ethereum (ETH) has gained nearly 15% in recent 24 hours amid strong bullish rally. The second-largest digital coin with the current market value of $27.8 million hit a multi-month high at $258.46 before retreating to $254.67 by press time. Currently, an average daily trading volume is registered at $22 billion against the recent average figure of $16 billion. Over 50% of all ETH addresses are in the money know, which is a significant improvement and the highest level since June 2019.
ETH volatility is also moving upwards, though it lags behind ETH price increase.
JP Morgan merges its blockchain project with ConsenSys
The news that one of the largest US banks are in talks with the blockchain startup ConsenSys might have served as an initial trigger for ETH stellar growth. Knowledgeable sources cited by Reuters pointed out that the blockchain unit of JP Morgan known as Quorum may be merged with Brooklyn-based startup ConsenSys. The financial details of the deal are not disclosed, though, it may be finalized within the next six months.
Quorum is based on the Ethereum blockchain. It has been developed internally by JP Morgan, and the reason for the merge remains unknown.
ETH/USD: Technical picture inspires ETH bulls
From the long-term point of view, ETH/USD attempted a move above SMA100 weekly (currently at $256.40) for the first time since August 2020. If this barrier is taken out, an upside momentum might start snowballing with the next focus as high as $300.00. This area may slow down the bulls and trigger a correction before another wave towards 2019 high of $363.54.
On the downside, the initial support is located at $216-200.00. Once it is out of the way, the sell-off is likely to gain traction towards $196.50 ( the middle line of the daily Bollinger Band). This area separates the coin from a deeper decline towards $175.50 guarded by SMA200 daily.
ETH/USD daily chart
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