Ethereum price analysis: ETH/USD bears dent critical support area, more pain ahead


  • ETH/USD bears push the price into the previous consolidation channel.
  • The next support is created by a confluence of technical indicators at $230.

Ethereum, the second largest cryptocurrency with the current market capitalization of $28.9 billion, has been consolidating losses after a steep decline on Thursday. At the time of writing, ETH/USD is changing hands at $269.31, down nearly 5% in recent 24 hours and mostly unchanged since the beginning of Friday.

Ethereum's technical picture

A sustainable move under $280 bodes ill for ETH bulls in the short run; the longer-term picture also looks worrisome as the price broke below SMA50 (Simple Moving Average) on a daily chart (currently at $276), coupled with the upper boundary of the previous consolidation channel. Unless the price returns above $276-$280 resistance area in the nearest future, the sell of will gain traction with the next bearish focus as low as $230. This support is created by the lower boundary of the said range and SMA100 daily.

On the upside, $300 is the area level to be cleared for a sustainable recovery. This psychological level is strengthened by the middle line of 1-day Bollinger Band, SMA100 4-hour and packed with short-term speculative orders. ETH bulls are likely to have a hard time making their way above this barrier. However, once this happens, the upside momentum will gain traction with the next focus on  $329 (the upper edge of the 4-hour Bollinger Band) closely followed by $331 (the upper edge of the 1-day Bollinger Band).

ETH/USD, 1-day chart

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

Altcoins push hard not waiting for a Bitcoin reaction

The Altcoin market has only needed one business day to see prices rise sharply again. Bitcoin, still, has adopted the anchor function and for the moment is giving up the battle for the $10000.

More Cryptocurrencies News

NEO/USD bullish following Binance Futures support

NEO is in the green on Monday during the European trading session. The bullish momentum is taking action after a couple of days of the bulls enduring battering from the bears.

More NEO News

ETH/USD tug of war at $270 intensifies as $280 beckons

Ethereum managed to stay above the support at $240 during the bearish Monday. Also contributing to the support was the long term ascending trendline. The recovery from the support has been steady enough to hit levels slightly above $270. 

More Ethereum News

Ripple Price Analysis: XRP/USD is bearish as long as it stays below $0.30

XRP/USD recovered to $0.2950 during early Asian hours only to retreat to $0.2850 by the time of writing. Despite the sell-off, the third-largest digital asset is still nearly 2% higher from this time on Monday and mostly unchanged since the beginning of the day. 

More Ripple News

BEST CRYPTO BROKERS/EXCHANGES

Bitcoin Weekly Forecast: BTC bulls brace for jump to $11,000

Bitcoin (BTC) has been growing for three weeks in a row. The first cryptocurrency hit $10,504 on Thursday - the highest level of 2020.

Read the weekly forecast

BTC

ETH

XRP