Ethereum Price Analysis: Is $230 ETH/USD’s last shot at a bullish reversal?

The bloodshed in the cryptocurrency market has started to send jitters among investors and crypto enthusiasts. The losses across the board remain vaguely unexplained especially with the Coronavirus fast becoming a global pandemic. One would expect that cryptocurrencies would continue to gain traction in such disastrous natural, geopolitical and economic circumstances.

Meanwhile, Ethereum failed to hold tentative support identified yesterday at $250. Instead, the bulls lost balance allowing the bears to exert more pressure, sending ETH/USD to $235 (intraday low). Trading activities on Wednesday have remained bearish with Ethereum having shed off 3.5% in value by the end of the Asian session. Besides, charts and rates table shows a bearish bias trend amid high volatility.

Coinbase Wallet now supports Ethereum Name Service

In a tweet sent out on February 26, Coinbase says that its Coinbase Wallet has extended support to Ethereum Name Service. The support will ensure that ETH users are able to send their payments to a wallet address that is human-readable instead of the usual hexadecimal address. In other words, users will get the feel of sending funds to an email address as opposed to scrambled strings of text. Note that the address will only function in this way if the user has the address registered with Ethereum Name Service (ENS). At the moment about 133,000 ETH addresses are registered with ENS compared to the total 88 million ETH addresses in existence.

Ethereum price technical update

Ethereum price has managed to pull upwards from the intraday low to trade at $239 at the time of writing. However, the sellers are generally in charge. Moreover, the RSI’s dip into the oversold region while still maintaining a downward slope suggests that ETH/USD reversal would not be forthcoming in the coming sessions. The momentum indicator doubles down on the ongoing selling pressure and emphasizes that the path of least resistance is to the downside.

With the downward movement slowing down, one is left wondering if $230 could be the support ETH has been searching for and, therefore, a bullish reversal is around the corner. If that is the situation, traders should be on the lookout for the RSI’s recovery from the oversold coupled with good volume levels, which could eventually send ETH/USD back in the bullish zone above $260.

ETH/USD 1-hour chart