Tanya Abrosimova
Independent Analyst
- ETH/USD is sliding down amid technical correction on the market.
- Ethereum registered a strong growth of trading volumes in recent days.
ETH, the second-largest digital asset with the current market value of $29 billion, hit the highest level of 2020 at $277.39 on February 13. By the time of writing the coin has retreated to $261.40 amid technical correction on the cryptocurrency market. ETH/USD has lost nearly 2% in recent 24 hours and stayed mostly unchanged since the beginning of the day.
ETH trading volumes on the rise
Apart from the spectacular price increase, ETH registered a strong growth of trading volumes. Ethereum's average daily trading volume jumped above $25 billion from $16 billion at the beginning of the week, while an average transaction size retreated to $1,000 according to the data provided by Intotheblock.
According to Skew Analytics, ETH had the most active session of the year on February 12 as the volume traded on BitMEX, Huobi & OKEx exceeded $1 billion.
ETH/USD: Technical picture implies further downside correction
On a 1-hour chart, ETH/USD moved below SMA50. This line located under $265.00 now serves as an initial resistance that needs to be taken out. Once this happens, the recovery may be extended towards psychological $270.00, followed by the upper line of 1-hour Bollinger Band on approach to $271.00. A sustainable move above this barrier will bring the recent high above $277.00 back into focus.
On the downside, the initial support is created by $260.00. If it is broken, the downside is likely to gain traction with the next focus on $252 ( the middle line of 4-hour Bollinger Band) and psychological $250.00. SMA200 1-hour at $245.50 should stop the sell-off and attract new buyers to the market.
ETH/USD 1-hour chart
-637172631873596901.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
MANTA suffers 4% pullback after unlocking tokens worth $40 million
Manta Network (MANTA) unlocked over 8% of its circulating supply on Thursday. The unlocked tokens were airdropped and distributed in public sale, according to data from Tokenunlocks.
XRP struggles to recover as lingering Ripple lawsuit could reach Supreme Court, former SEC litigator says
The SEC vs. Ripple potential showdown at the Supreme Court is likely, says former SEC litigator Ladan Stewart. XRP Ledger calls developers, businesses and investors to build on the blockchain, extending Apex 2024 registration until April 30.
Bitcoin Layer 2 Merlin chain TVL climbs 20%, defying broad market correction
Merlin chain’s TVL added 20% this week, and crossed $800 million on Thursday. Bitcoin Layer 2 assets noted double-digit losses in the past week. Stacks, Elastos, SatoshiVM, BVM are hit by a correction as Bitcoin hovers around $61,000.
If Bitcoin restarts bull run, these altcoins are likely to explode Premium
If Bitcoin’s consolidation ends and the bull run resumes, altcoins are likely going to trigger a massive rally. Last cycle’s hot tokens like SOL, AVAX, WIF, ONDO, etc., could see renewed enthusiasm.
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.