Ethereum market overview: ETH/USD rebound looms as bears step aside
- The building bullish momentum is supported by the 100 SMA holding at $230.
- Traders expecting a struggle at $240, $260 support turned resistance, and the supply zone $280.
Ethereum bulls have caused havoc for the traders who had anticipated that the crypto will make an incredible journey breaking above $300. Instead, ETH/USD reversed the trend and turned immediately turned from being the best performing altcoin on the market this to the worst hit coins. Ethereum lost $57 in less than 24 hours from the yearly highs posted at $281 to the intraday low at $224.
Following the incredible performance since Monday, Ethereum investors run to cash in on the profits. A pullback is usually expected after a surge and especially if strong support fails to form. However, pullbacks are not always bad for the asset as it can be used to confirm the bull rally. For example, after Ethereum formed a low at $224, we can see a correction that has already spiked above $230 to the current value at $236.
The building bullish momentum is supported by the 100 Simple Moving Average (SMA) at $230 while the 200 SMA is positioning itself to offer support at around $206.92. The shorter term 100 SMA being above the 200 SMA shows that the buyers still have the energy to defend the support at $220. As far as upside correction is concerned traders can expect a struggle at $240 $260 and the supply zone $280. Technical signals show that the price is trending sideways in the sessions to come between $220 and $240.
Author
John Isige
FXStreet
John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren
