Ethereum price analysis: ETH/USD stops within a whisker of 50% Fibo support

Ethereum recovery capped at $184 resistance while $180 becomes the new pivotal level.
The 50% Fib level is the most important short-term support but both 100 SMA and the 61.8% Fibo are in line as support zones.

The sellers on the cryptocurrency market are still holding the buyers at hostage. In fact, if this situation continues a while longer, investors will start getting jitters. It is good to consider ETH has plunged from highs above $360 to test lows around $155. The recovery from the recent drop lacks a catalyst while at the same time support areas remain vulnerable.

The Ethereum 2.0 is still in development, although at the last stages. A tentative launch date had been mentioned to take place after this year’s Christmas holidays but delays have already been anticipated. Besides, an official late is yet to be picked. Ethereum 2.0 is meant to migrate the network to a proof-of-stake protocol from the current proof-of-work consensus algorithm. Faster transactions and higher capacity for decentralized applications are just but a few of the features expected.

Meanwhile, Ethereum is trending a subtle 0.09% lower on Wednesday. The prevailing trend is slightly bearish, although the 1-hour chart clearly shows a recovery from the main short-term support at the 50% Fib retracement level. The upside has been capped at $184 while $180 is the new pivotal. Also providing support is the 100 Simple Moving Average and the 61.8% Fib level.

Indicators are slightly especially with the Moving Average Convergence Divergence stuck in the negative zone. However, a visible upward correction towards the mean line will most likely encourage the bulls to believe in their own strength.

ETH/USD 1-hour chart

Share: Cryptos feed

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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram