ETH/USD consolidates daily losses before testing critical $200 handle


  • Bearish pressure surrounding major cryptocurrencies stays intact on Friday.
  • Ethereum falls for fourth straight day, closes in on $200 level.
  • Technical indicators show a deep recovery is unlikely.

After climbing to its highest level since July 14 at $239.45 on Tuesday, Ethereum (ETH/USD) reversed its direction and closed the previous three days in the negative territory. With the selling pressure surrounding cryptocurrencies gathering strength on Friday, the ETH/USD pair extended its decline and touched a 10-day low of $207.50 before going into a consolidation phase.

As of writing, the pair was down 4.25% on the day at $211.45. Following today's slump, the total market capitalization of Ethereum fell to $23 billion from $25 billion earlier in the week.

The lack of fundamental catalysts suggests that Ethereum is suffering from negative crypto market sentiment. In fact, with the exception of Tezos, every single cryptocurrency listed in the top-20 is in trading in the red on Friday.

Technical outlook

The Relative Strength Index (RSI) indicator on the daily chart is now around the 40 mark, suggesting that the pair has more room on the downside before the RSI drops below 30 and shows oversold conditions. Moreover, unless the pair climbs above $218, it will post its first daily close below the 20-day moving average for the first time in August.

The initial support for the pair aligns at $200 (psychological level/Jul. 24 low). With a decisive break below that level, $190 (Jul. 16/17 low) could be seen as the next target. On the upside, $218 (20-day MA) is the initial hurdle ahead of $240 (Aug. 6 high).

 

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.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

Bitcoin Price Prediction: BTC/USD faces resistance at $8,780

BTC/USD continued to go up following a bullish Tuesday, wherein the asset went up from $8,624 to $8,724. Presently, it is priced at $8,630. The daily confluence detector shows that there is a strong resistance level at $8,780.

More Bitcoin News

Litecoin Price Analysis: LTC/USD rises from a key pennant pattern

Litecoin appears to have stalled marginally under the $60 key resistance zone. The daily cryptocurrencies rates show that LTC is facing growing bearish pressure. The price is dancing at $57.5 after ...

More Litecoin News

BCH/USD has formed a big potential bullish pennant structure

Bitcoin Cash price is trading in the red, with losses of 1.05% in the second half of the session. The price action over the last seven sessions has been narrowing, range subject to a breakout. The above-noted range is to a high of $360 down to a low of $330. 

More Bitcoin Cash News

Ethereum Price Analysis: ETH/USD consolidates below $170

ETH/USD bears have taken control in the early hours of Wednesday, following a bullish Tuesday where the price went up from $166.75 to $169.45. Currently, the asset is priced around $169 and is hovering above the SMA 50 and SMA 20 curves.

More Ethereum News

BEST CRYPTO BROKERS/EXCHANGES

Bitcoin Weekly Forecast: Bulls piggy-back on altcoins rally

This week was marked by a strong altcoins rally on the cryptocurrency markets. Bitcoin SV (BSV) and Dash experienced the sharpest price increase over 100% in recent seven days...

Read the weekly forecast

BTC

ETH

XRP