Tanya Abrosimova
Independent Analyst
- Ethereum is sandwiched between $360 and $400.
- Tom Lee hopes to see the rebound as soon as the tax day is over.
Most major cryptocurrencies are trading in tight ranges, and ETH is no exception. The coin has been locked in a narrow range below $400 for the most of the week as the market amid dying volatility and low trading volumes.
America is moving closer to its income-tax filing deadline, which may be one of the reasons for the recent sell-off as people cash out their crypto investments to pay the taxes, Tom Lee, the head of research at Fundstrat Global Advisors, believes. If that is the case, the downside pressure will be released as soon as we pass the tax day in mid-April.
“This is a massive outflow from crypto to dollars. Historical estimates are each $1 of USD outflow is $20-$25 impact on crypto market value,” Lee wrote.
Ethereum technical picture
ETH/USD is now trading at $377.00, with the recovery attempts capped at $380.00 - the local resistance level strengthened by 50-EMA (hourly chart). It is closely followed by $388 (100-EMA, hourly chart) and ultimate short-term pivot $400.00. The coin needs to get above the said area to overcome the short-term bearish bias. On the downside, strong support is registered at $366.00 and $360.00. Once below, the sell-off may be extended towards Sunday's low at $358.80 and the critical $320.00-$300.00 area.
ETH/USD, the hourly chart
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