Tanya Abrosimova
Independent Analyst
- ETH/USD has recovered from the intraday low, but the upside momentum is weak.
- The critical support is created by the trend line on approach $193.00.
ETH/USD touched the intraday low at $195.17 and recovered to $199.50 by press time. The second-largest digital asset attempted a recovery above $219 on Sunday, May 3, and has been trading with bearish bias ever since. ETH/USD has lost over 6% in recent 24 hours and 4.5% since the beginning of Monday.
Currently, 35% of Ethereum addresses are in the money. About 1.63 million addresses holding 3.36 million ETH have their breakeven point in the range from $202 to $216. Once this area is cleared, the upside momentum may gain traction with the next focus on the recent high at $227.36.
ETH/USD: Technical picture
On the intraday charts, ETH/USD needs to regain ground above $206.00 area to improve the short-term technical picture. This resistance is reinforced by 1-hour SMA200 ($205.70). Once it is out of the way, the upside is likely to gain traction with the next focus on $210.00 with 1-hour SMA50 and SMA100 located around this psychological barrier. A sustainable move above this area is needed to get the recovery back on track and open the way to $220.00, followed by the above-said high at $227.36.
On the downside, a sell-off to $195.300-$195.00 will increase the short-term bearish pressure. The lower line of the 1-hour Bollinger Band at $195.30 may slow down the bears, however, if this support area is cleared, ETH/USD will go down to the upside-looking trend line from March 13 low. This is a pivotal level that separates the downside correction from the resumed bearish trend. This line is closely followed by psychological $190.00 and daily SMA100 that may serve as an additional backstop and trigger the recovery.
ETH/USD 1-hour chart
-637241917165400126.png)
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
Lido DAO announces new phase on Ethereum with Simple DVT module
Lido DAO voted on the deployment of the Simple DVT module nearly six months ago, it is ready for mainnet as of April 17. Simple DVT helps to make Lido’s technology accessible to more users. LDO price is down nearly 3% in the past day.
New altcoins crash and burn, but this altcoin shows strength Premium
Binance Coin price shows a bullish pennant continuation pattern. BNB could range between the $600 to $526 levels until the skies clear out for Bitcoin. The altcoin could see a massive gain with the upcoming BEP-336 upgrade.
Cronos price fails to recover despite network upgrade
Cronos (CRO) is an Ethereum Virtual Machine (EVM) compatible chain in the Cosmos ecosystem. A mainnet upgrade was completed early on Wednesday and the asset’s price declined nearly 2% in the past 24 hours.
XRP tests $0.50 resistance after Ripple CLO says pretrial conference with SEC did not take place
XRP is stuck below $0.50 resistance after failing to close above this level since Monday. Ripple CLO Stuart Alderoty said late Tuesday there was no pretrial conference since the SEC dropped charges against executives.
Bitcoin: BTC’s rangebound movement leaves traders confused
Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established.