Ethereum Price Analysis: ETH/USD may retest $200.00 before the recovery is resumed
|- ETH/USD experienced a sharp sell-off triggered by technical factors.
- The coin may retest $200.00 before the buyers return to the market.
The second-largest digital asset resumed the decline and dropped from $210 to $206.00 in a matter of an hour. At the time of writing, ETH/USD is changing hands at $206.30. Despite the sell-off the price has stayed mostly unchanged both on a day-to-day basis and since the beginning of Sunday. The short-term trend is bearish, while the volatility is growing.
ETH/USD: Technical picture
On the intraday chart, ETH broke below above 1-hour SMA100 (currently at $206.50) and tested the lower line of the 1-hour Bollinger Band at $205.80. This development is a negative technical signal in the short run. If the price fails to regain ground we may see a follow-through towards psychological $200.00, which is reinforced by 4-hour SMA200. This barrier is likely t attract new buyers to the market; however, a move below this area will worsen the technical picture and bring more sellers back to the market. They will target at the recent low of $191.49 and the daily SMA100 below $190.00.
Meanwhile, the RSI on an intraday chart is reversing to the upside, which means the sell-off may be limited and the coin may continue moving upwards in the nearest hours.
On the upside, the initial resistance is created by a combination of 1-hour SMA50 and SMA200 at $207.50. If it is broken, the recovery may be extended towards $210.00 and $215.00
ETH/USD 1-hour chart
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.