Ethereum (ETH) price analysis: ETH/USD hovers around $270 amid directionless trading

A move above $270.00 is needed to improve the technical picture.
The nearest strong support for the coin is seen at $260.

Tanya Abrosimova Independent Analyst

Ethereum (ETH) has recovered from Tuesday's low of $260 to trade at $268 on Wednesday. The second largest cryptocurrency with the current market capitalization of $28.5 billion is mostly unchanged since the beginning of the day and down 1.5% in recent 24 hours. An average daily trading volume for ETH is registered at $8.4 billion from $5.7 billion this time on Tuesday.

Looking technically, ETH/USD recovery is capped by $269.00 support created by SMA100 (Simple Moving Average) and SMA50 on 1-hour timeframe. It is closely followed by the upper line of 1-hour Bollinger Band and psychological $270.00. We will need to see a sustainable move above this area to get the recovery back on track. Once it is cleared, the upside is likely to gain traction with the next focus on $276 (upper line of 4-hour Bollinger Band).

On the downside, the sell-off is likely to be stopped by new buying orders located on the approach to $260.00. This level stopped the sell-off on Tuesday. However, a sustainable move below this handle will open up the way towards $255.50 (SMA200, 4-hour) and $254.00 (SMA100, 4-hour). The next support is seen at $230 (SMA50, a daily chart).