- A move above $190.00 is needed to mitigate the immediate bearish pressure.
- The significant support is created by a confluence of technical indicators below $185.00.
The second-largest cryptocurrency with the current market capitalization of $20.1 has been losing ground during early Asian hours. Ethereum has lost nearly 2.5% in recent 24 hours to trade at $185.70 at the time of writing. The coin is moving in lockstep with Bitcoin and other major altcoins, which means that it is vulnerable to further losses in the short-term.
Ethereum’s technical picture
Looking technically, a swift recovery from the intraday low of $184.62 bodes well for short-term ETH bulls. However, the coin is still under strong pressure as long as it stays below psychological $190.00. This area is strengthened by SMA100 (Simple Moving Average) on the 1-hour chart, though we might have a hard time forcing the way towards the said resistance. A confluence of strong technical indicators including SMA50 1-hour and the middle line of 1-hour Bollinger Band at $188.00 might slow down the potential recovery.
On the downside, psychological $185.00 strengthened by the lower line of 4-hour Bollinger Band at serves as an initial support level that might limit downside correction for the time being. However, a sustainable move below this handle will open up the way towards the intraday low of $184.62 and to August 25 low of $182.96. Once it is out of the way, the sell-off is likely to gain traction with the next focus on psychological $180.00.
ETH/USD, 1-hour chart
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
XRP ruling by Judge Torres denied in Coinbase lawsuit, yet another blow to Ripple
XRP programmatic sales ruling by Judge Torres completely rejected by US Court in Coinbase lawsuit. US Court rejected Coinbase’ motion to dismiss SEC lawsuit, weighing heavily on Ripple’s legal battle.
Sushi price eyes $3 after clearing key weekly resistance level
Sushi price flips the $1.628 resistance level into a support floor after a month of struggle. A temporary retracement might be a good opportunity to accumulate SUSHI before a retest of $3. A breakdown of the $1.267 barrier would invalidate the bullish thesis.
Bitcoin Price Outlook: Will $150 billion bank Morgan Stanley send BTC to new ATH?
Bitcoin has recorded increased volatility this week, with most of BTC holders currently in profit. As market activity continues to grow with long-term holders now ramping up on distribution pressure, the pioneer crypto is bearing the brunt of growing overhead pressure.
Coinbase loses first round of battle against SEC
A day after the SEC filed a lawsuit against Binance last year, it went after Coinbase in a sign that the clampdown is extending to key players in the industry. The latest development in the matter is that the court has ruled in favor of the financial regulator, which means the case will continue.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.