Tanya Abrosimova
Independent Analyst
- ETH/USD recovers from critical $500.
- EOS team might be behind ETH collapse on Monday.
Ethereum lost over 11% on Monday and stopped within a whisker of $500 threshold. The price touched $505 low before fresh buying interest helped to trigger the recovery. The second largest coin with market value $52.6B has lost nearly 7% in recent 24 hours and over 20%. Currently, ETH/USD is trading at $528.
Looking technically, ETH/USD downside potential is limited as long as the coin stays above $500 support. Strong buying interest located on the approach to this area will be mitigating the selling pressure for the time being. Once it is broken, the coin may crash all the way down to $400 and $362 (April 2 low). On the upside, the recovery doesn't look promising while below $600. This resistance blocks the way to a more serious obstacle, created by a combination of important resistance levels: 23.6% Fibo at $652, 100-DMA currently at $633 and 50-DMA at $638.
Meanwhile, traders noted an extraordinary spike in ETH/USD trading volumes on Bitfinex that happened at the time of epic ETH crash during early European hours. That might mean that someone dumped a huge amount of ETH on Bitfinex, triggering the collapse. The blame goes to EOS team that was selling Ethereum received during crowdsale. It's not the first time the team sells their coins. Bitfinex is currently campaigning to become EOS Block Producer, which explains the choice of the trading platform for the hefty transaction.
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