fxs_header_sponsor_anchor

Ethereum Price Update:ETH/USD bears ready to drive the price to $300

  • Ethereum's technical picture implies that the coin is vulnerable to further losses.
  • The daily SMA100 creates strong support at $300.

Ethereum (ETH) hit the recent high at $488.88 on September 1 and has been in free fall ever since. The second-largest coin by the market capitalization dived to $335.23 on Saturday before recovering to $354 by the time of writing. ETH has lost over 6% on a day-to-day basis and over 10% in the last seven days amid a major sell-off on the global cryptocurrency market. 

ETH/USD: The technical picture

Ethereum's price dropped below the daily SMA50 at $370 and extended the sell-off towards $335 during early Asian hours on Saturday. While the losses have been partially recovered, the short-term trend is still bearish as long as ETH stays below the above-said SMA. A sustainable move above $370 will improve the immediate technical picture and allow for an extended recovery towards the psychological $400. A move higher will negate the bearish scenario and bring the resistance of $440 into view. 

ETH/USD the daily chart

Meanwhile, the RSI on a daily chart points downwards, signaling that strong upside momentum is less likely at this stage. A failure to regain the ground will worsen the technical picture and lay the ground for the further sell-off towards psychological support created by $300. This barrier is reinforced by the daily SMA100 and has the potential to slow down the bears. 

IntoTheBlock's "In/Out of the Money Around Price" (IOMAP) model reveals that 3.76 million addresses have their break-even point around $300. This cohort adds credibility to this support area and suggests that bears will struggle to push prices down. However, if they succeed, another crucial barrier of $244 (daily SMA200) will come into view. 


 

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.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.