Tanya Abrosimova
Independent Analyst
- ETH/USD is still dangerously close to $600.
- Key resistance is created by $700, which is out of reach for now.
Ethereum dropped to $543 on Thursday before buyers appeared and pushed the price above $600 handle. The second largest coin with market value $59B has lost over 17% of its value from the recent peak at $724.80 and broke below all critical technical levels, including 23.6% Fibo at $652 and 50-DMA currently at $621.
Looking technically, ETH/USD bears meet with opposition on approach to weekly 50-SMA, currently at $526. This support is critical for the coin in the long run as a sustainable move lower will trigger a strong wave of selling orders and take the price all the way down to $400 and $362 (April 2 low). On the upside, the above-mentioned $652 and 50-DMA is the first hurdle for the bulls. Once it is cleared, even more significant $700 will come into focus.
Ethereum short-term technical picture
On the intraday basis, ETH/USD moved above 50-SMA (hourly chart), which is a positive sign. However, the coin is still vulnerable as the momentum may prove to be short-lived. We need to see the price moving away from dangerous $600 handle towards 100-SMA ($643) before we can say that the recovery is entrenched.
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
TRON gains 10% in 2024, supply of stablecoins reaches over $50 billion in Q1
TRON, a blockchain-based digital platform, has seen positive growth in the first quarter of 2024, as seen in a Messari report. TRON noted gains across several metrics like market capitalization, revenue and total value locked.
XRP hovers near $0.50 as Ripple CTO addresses concerns related to stablecoin launch
XRP is hovering near $0.53 on Friday, spending nearly all week below $0.55. Ripple CTO David Schwartz addressed concerns on stablecoin and XRP utility on Thursday.
Terraform Labs set to restrict access for users in the US after recent ruling in SEC lawsuit
Blockchain company Terraform Labs said Thursday that it will restrict access to some of its products and services for US-based users as it expects to receive a court order soon in light of its legal battle against the US Securities and Exchange Commission (SEC).
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s (BTC) recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Bitcoin: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s (BTC) recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.