- ETH/USD erases the gains of the previous days amid massive market sell-off.
- A double-top formation may signal deeper losses for ETH.
Ethereum (ETH) now the second-largest digital asset with the current market value of $28.3 billion, has lost nearly 8% in recent 24 hours to trade at $256.0 at the time of writing. ETH/USD erased the gains of the beginning of the week and hit a low of $251.00 on Wednesday amid massive sell-off on the cryptocurrency market. Currently, only 52% of all Ethereum addresses are in the money, which is a bearish signal for the market.
Notably, Ethereum network activity slowed down after a spike at the end of the previous week. Thus, according to Intotheblock data, the number of active addresses declined by 11%. Also, the number of newly registered assets decreased by 21% in the recent seven days. Active address ratio also retreated from the recent peak of 0.82% to 0.69$. The ratio is calculated as a percentage of addresses with a balance that registered a transaction during a given period.
ETH/USD: Technical picture
ETH/USD recovery is capped by the initial resistance located at $267.00. This barrier is created by a combination of SMA50 and the middle line of the Bollinger Band on the 4-hour chart. Once it is cleared, the recovery may be extended towards $270.00. The ultimate resistance lies in $287.00-$290.00 area, which includes the recent high and a double top on the 4-hour chart. A sustainable move higher will open up the way towards $300.00.
On the downside, the initial support is created by $251.00 (the recent low) and $250.00. The next important barrier comes as low as $241.00. This support is created by SMA100 4-hour and a neckline of the above-mentioned double-top formation. If it is broken, the sell-off will gather place and take the price towards $200.00.
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.