Ethereum price analysis: ETH/USD recovers from the slump, staying around $600
|- ETH/USD recovery capped by $600.
- Crypto movements are dominated by hype and emotion, research shows.
Ethereum price has recovered to $599 from Wednesday's low reached at $562. The second largest digital asset with the market value over $60B lost 16% in 3 days amid global cryptocurrency sell-off, triggered by fresh regulatory attempts to clamp down on the market and disappointment with Consensus conference.
While there are no Ethereum-specific reasons that might have triggered the sell-off. Most experts share the view that the market is driven by sentiments and speculative factors as opposed to economic and fundamentals.
According to the research of Daniele Bianchi from Warwick Business School, the cryptocurrency market pricing is influenced only by hype and emotions of traders, which makes it similar to dotcom bubble of early 2000.
Ethereum technical picture
ETH/USD is still capped by $600 handle, followed by 50-DMA at $618, which serves as a good resistance level. Once they are cleared the recovery may be extended towards 23.6% Fibo at $652. On the downside, movement below $550 will trigger sell-off with the aim at $500.
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.