Tanya Abrosimova
Independent Analyst
- ETH/USD recovery momentum is fading away on approach to strong resistance.
- South Korean news might be behind the correction.
Ethereum is changing hands at $569, off the Asian high registered at $586. ETH/USD is rangebound amid low trading activity typical for Asian markets. The second largest coin gained nearly 10% since this time yesterday, increasing market capitalization to $57.1B.
Looking technically, ETH/USD strong buying interest around $500 threshold stopped the carnage on Tuesday, however, $600 handle remains unbroken, which means that ETH is not out of woods yet. This resistance is followed by a more serious hurdle, created by a combination of 23.6% Fibo at $652, 100-DMA currently at $629 and 50-DMA at $642. Only a sustainable movement above this area will signal that an extended recovery is in place. Meanwhile, the downside potential is limited by above-mentioned $500 support. Once it is cleared, the coin may fall all the way down to $400 and $362 (April 2 low).
The news that National Assembly of South Korea is looking to establish a legal basis for cryptocurrency trading and ICOs might be considered as one of the factors behind the recovery across the cryptocurrency market.
“We will also establish a legal basis for cryptocurrency trading, including permission of ICOs, through the National Assembly Standing Committee. We need to form a task force including private experts in order to improve transparency of cryptocurrency trading and establish a healthy trade order,” said the Committee of National Assembly as quoted by Business Korea.
ETH/USD, the daily chart
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
PancakeSwap loses nearly 3% value intraday as the DEX crosses $1 billion in trade volume
Decentralized exchange (DEX) PancakeSwap (CAKE) announced in an official tweet that it has crossed $1 billion in trade volume on the Layer 2 chain, Base. CAKE on-chain metrics support the thesis of a recovery in the DEX token’s price.
Shiba Inu hits new milestone, over $9 billion worth of SHIB tokens burnt
Shiba Inu (SHIB), the second-largest meme coin in the crypto ecosystem, recently hit a milestone in the volume of tokens burned. Shiba Inu has burnt over 410.72 trillion SHIB tokens since the inception of the burn mechanism in the project, worth over $9 billion.
Dogwifhat crashes 60%, but here's why you should not buy WIF yet Premium
Dogwifhat (WIF) price shows a slowdown in the bearish momentum as it sets up a potential range. This development could lead to a good buying opportunity from a long-term perspective.
XRP struggles to overcome $0.50 resistance, SEC vs. Ripple could enter final pretrial conference
XRP is struggling with resistance at $0.50 as Ripple and the US Securities and Exchange Commission (SEC) are gearing up for the final pretrial conference on Tuesday at a New York court.
Bitcoin: BTC’s rangebound movement leaves traders confused
Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established.