Ethereum Price Analysis: ETH/USD regains ground, $130.00 still unconquered
- ETH/USD has recovered on Friday, moving in sync with the market.
- A sustainable move above $130.40 will improve the technical picture.
Ethereum tested 125.00 during early Asian hours but managed to recover above 129.00 by press time. The second-largest digital asset with the current market value of $14.1 has stayed unchanged on a day-to-day basis and gained nearly 2% since the beginning of Friday amid the recovery across the cryptocurrency markets.
The second fork in a month
Ethereum team launched Muir Glacier hard fork to postpone the activation of the difficulty bomb. The fork was deemed successful even though less than 90% of the network participants were ready for the update in time. Muir Glacier was needed to tame down the growth of transaction costs before the team is prepared to deploy Ethereum 2.0 update and initiate a transition to Proof-of-Stake.
The team hopes to deploy Ethereum 2.0 in 2021 with the Serenity update.
Muir Glacier, Istanbul, Constantinople and St. Petersburg hard forks are related to Ethereum 1.0 though they are considered as a preparation for Ethereum 2.0.
ETH/USD: technical picture
On the intraday charts, ETH/USD attempted a recovery above SMA50 (Simple Moving Average) 1-hour currently at $129.45, but failed to hold the ground. This local resistance separates us from the psychological $130.00, which is closely followed by $130.40. This barrier is created by a combination of SMA100 and the upper line of the Bollinger Band on 1-hour chart.
On the downside, a sustainable move below $128.00 ( the middle line of 1-hour Bollinger Band) will worsen the short-term technical picture and bring the recent low of $125.00 back into focus. Once itis cleared, the sell-off may be extended towards $120.00.
ETH/USD 1-hour chart
Author
Tanya Abrosimova
Independent Analyst
