Ethereum Price Analysis: ETH/USD claws back ground after a sharp sell-off below $400.00

Ethereum is back in recovery track after a major sell-off during early Asian hours.
The local resistance is created by a psychological $400.00.

Tanya Abrosimova Independent Analyst

Ethereum's ETH dropped below $400 after an initial attempt to settle above $410 during early Asian hours. At the time of writing, ETH/USD is changing hands at $395.00, down over 2% both on a day-to-day basis and since the beginning of the day. From the short-term point of view, ETH is still moving within a strong bullish trend amid low volatility.

ETH/USD: The technical picture

ETH/USD dropped below 1-hour SMA100 (currently at $396) and tested the intraday low of $389.96. This area now serves as local support that has the potential to slow down the short-term bears. Once it is cleared, the downside momentum will gain traction with the next focus on the lowest level of the past weekend at $380.00.

However, the RSI on the intraday chart has already reversed to the upside from am oversold territory, which means the recovery may be on the way. The first upside target is created by the psychological barrier of $400.00, It is followed by the recent high of $410.00. A sustainable move above this area is needed for the bullish momentum to gain traction with the next focus on $450.00 reinforced by the upper line of the daily Bollinger Band. This area stopped the recovery during the previous week.