Ethereum price analysis: ETH/USD recovers from the slump, staying around $600
- 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.
Author
Tanya Abrosimova
Independent Analyst
