Tanya Abrosimova
Independent Analyst
- ETH/USD has recovered from Asian low, but the momentum is weak.
- $150 is critical for claiming that ETH has bottomed out.
Ethereum touched $124.48 low during early Asian hours before recovering to $135 by the time of writing. The third largest asset with a current market value of $13B stays in the oversold territory amid decreased volatility. ETH/USD has stabilized after Tuesday's collapse, however, the downside momentum may gain traction later during the day, when Europen traders join the market.
ETH/USD has lost over 82% since the beginning of the year. The coin is trading at the lowest level since May 2017 amid increasingly bearish sentiments. An ICO boom that supported Ethereum during 2017 might turn against the coin, increasing the downside pressure as the projects sell their proceeds to finance everyday needs.
Ethereum's technical picture
On the intraday level, ETH/USD is supported by psychological $130.00 area, which includes Pivot Point Monthly Support 3 and SMA5, 1-hour. Once it is cleared, the downside may be extended towards the Asian low $124.48 and to $124.24 (Tuesday's low). The pivotal support lies with $120.00. It is likely to stop the sell-off for the time being.
Considering that the Relative Strength Index (1-hour) is turning downwards, the upside correction may be short-lived. Basically, the bulls need to take the price above $146,25 (SMA50, 1-hour) and $150.00 handle to mitigate the bearish pressure.
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
Ethena plans to leverage USDe to integrate DeFi, CeFi and traditional finance
Ethena (ENA), a protocol developed on the Ethereum blockchain offering a synthetic stablecoin (USDe) that operates across various DeFi applications, announced on Friday that itsUSDe will integrate DeFi, CeFi and traditional finance as part of its 2024 roadmap.
XRP hovers above $0.50 as Ripple joins alliance to simplify recovery of digital assets
XRP trades around $0.5174 early on Friday, wiping out gains from earlier in the week, as Ripple announced it has joined an alliance to support digital asset recovery alongside Hedera and the Algorand Foundation.
Toncoin price surges as Notcoin gains attention across the crypto community
TON saw a brief rally on Thursday following a recent announcement that Binance and OKX will launch Notcoin (NOT) as the newest token on the Binance launchpool and the OKX Jumpstart.
AI crypto coins rally ahead of ChatGPT creator OpenAI plans to announce Google search competitor on Monday
Barely before the hype around NVIDIA stock gain is over, AI crypto tokens have another bullish catalyst coming their way, which could provide more tailwinds to drive the price of the sector’s tokens.
Bitcoin: Why BTC is close to a bottom
Bitcoin (BTC) price efforts of a recovery this week have been countered by selling pressure during the onset of the American session. However, the downside potential appears to have been capped. Markets have noted significant trading differences between sessions, and while the Asian market showed strength, whatever ground they were able to cover was oftentimes wiped out by traders in the US.