Ethereum Price Update: ETH/USD to struggle on approach to $400
|- Ethereum has gained ground after the sharp sell-off to $311.
- The strong technical barriers on approach to $400 may limit the recovery.
Ethereum (ETH) hit the recent low of $311 on September 5 and recovered above the local resistance of $340 by the time of writing. The second-largest digital asset has gained nearly 4% both on a day-to-day basis and since the beginning of the day, moving within the short-term bullish trend with low volatility.
Sushi token is all over the place again
The controversial DeFi token SUSHI recovered from nearly $1 to over $2.2 in a matter of hours after the project's creator announced that Timelock admin control had been transferred to the CEO of FTX. He also apologized for scaring the community.
I hope @SushiSwap does well without me. Again I did not intend to do any harm. I'm sorry if my decision did not follow what you expected. But I want to stress again, and I did not intend to scam anyone. No LPs are lost whatsoever. I kept all my promises.
The DeFi industry sighed with relief as DeFi tokens recovered from the recent lows and pushed ETH off the critical support. The majority of the assets are still deep in red on a day-to-day basis, and only time will tell whether the party goes on or the hangover is upon us.
Notably, the community is skeptical about the announcement made by ChefNomi, the anonymous creator of SushiSwap.
ETH/USD: The technical picture
On the intraday charts, ETH/USD is testing the bearish trendline at $353. If it is broken, the recovery may be extended towards the psychological barrier of $400. However, the 1-hour SMA100 at $390 may slow down the momentum and discourage the bulls from approaching the critical level. On the other hand, a failure to break the trend line will result in a new bearish wave and bring the recent low of $311 back into focus.
ETH/USD 1-hour chart
If we zoom out, the price needs to recover above the daily SMA50 (currently at $370) to elevate the immediate bearish pressure and improve the technical picture. This area served as strong support for the coin since the beginning of August, which means the bulls may have a hard time taking it out. The next support is created by the above-mentioned $400, which is also reinforced by September 5 high ($394) and September 4 high ($400). On the downside, the psychological $300 is reinforced by the daily SMA100.
ETH/USD daily chart
To conclude: The resistance area located on the approach to $400 may ETH/USD recovery in the short run. If this barrier is cleared, the upside momentum may gain traction with the next focus on $440. Otherwise, the price will enter the range-bound phase with critical support at $300.
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