- ETH/USD bears are celebrating victory as the coin trades below SMA100 daily.
- A recovery above $235 is needed to mitigate the immediate selling pressure.
Ethereum, the second largest cryptocurrency with the current market capitalization of $24.4 billion, has recovered about 3% of its value in recent 24 hours to trade at $227.50 by the time of writing. ETH/USD has recovered from the recent low of $202.80, though the upside momentum is limited so far as the cryptocurrency market has entered a consolidation phase after wild gyrations of the weekend.
Ethereum's technical picture
On the daily chart, ETH/USD touched $234.28 during early Asian hours; however, the bulls faced a stiff resistance created by SMA100 (Simple Moving Average) and the lower boundary of the previous consolidation channel located marginally above $230. We will need to see a sustainable move above $230-$235 area to mitigate the immediate bearish pressure.
Once it is cleared, the recovery is likely to gain traction with the next focus on $240.50 barrier strengthened by 38.2% Fibo retracement daily on approach. The next resistance comes at psychological $250.00 and $275.00 (SMA50 daily and the upper line of the above-said range).
On the downside, the nearest support comes at $22.60 (the lower line of 1-hour Bollinger Band), followed by $212.00 (the middle line of 1-week Bollinger Band). Once it is passed, the recent low of $202.80 and psychological $200.00 will come into focus.
This area is likely to create a recovery impulse; however, a sustainable move lower will bring $190 and $183.30 (SMA100 daily) into view.
ETH/USD 1-day chart
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.