Tanya Abrosimova
Independent Analyst
- ETH/USD recovery capped by $600.
- Crypto movements are dominated by hype and emotion, research shows.
Ethereum price has recovered to $599 from Wednesday's low reached at $562. The second largest digital asset with the market value over $60B lost 16% in 3 days amid global cryptocurrency sell-off, triggered by fresh regulatory attempts to clamp down on the market and disappointment with Consensus conference.
While there are no Ethereum-specific reasons that might have triggered the sell-off. Most experts share the view that the market is driven by sentiments and speculative factors as opposed to economic and fundamentals.
According to the research of Daniele Bianchi from Warwick Business School, the cryptocurrency market pricing is influenced only by hype and emotions of traders, which makes it similar to dotcom bubble of early 2000.
Ethereum technical picture
ETH/USD is still capped by $600 handle, followed by 50-DMA at $618, which serves as a good resistance level. Once they are cleared the recovery may be extended towards 23.6% Fibo at $652. On the downside, movement below $550 will trigger sell-off with the aim at $500.
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