Ethereum Market Update: ETH/USD contains gains in a key ascending channel

Ethereum price temporally recovers from Monday support at $195 but downward trending RSI spells doom.
Ethereum network transactions hit the highest level since July 1 2019 after rowing 75% from February lows.

After a gruesome trading session on Monday, Ethereum managed to recover, reclaiming the position above $200. The dip tested support at $195, marking the end of the reversal. On the upside, Ether ascended to new April highs at $227 but the desire to close the month of April above $250 was thwarted by a comeback retaliatory move from the bulls, which has managed to keep the price under the resistance at $210.

In the meantime, Ethereum is trading at $206 after losing at least 0.40% of its value on the day. An intraday high has been formed at $208.66 from an opening value of $206.83. Amid the high volatility, the developing bearish trend threaten the position of the bulls above $200.

Ethereum transactions surge to the highest level since July 1

The issuance of stablecoins on the Ethereum network has kept the activities in terms of the confirmed transactions on an incredible growth trend. As per the data provided by Coin Metrics, the number of transactions rose to 845,400 on April 30 (the highest since July 1, 2019). This was a significant increased considering the transactions had sunk to a 12-month low in February. According to Lucas Nuzzi, the network data product manager at Coin Metrics:

The recent Cambrian explosion of stablecoin issuance has been a considerable driver of on-chain activity.

Ethereum stablecoin transaction data

Ethereum technical picture

As mentioned, ETH/USD is facing resistance at Tuesday’s intraday high ($208.66). In addition to that, $210 continues to limit the movement north while the 61.8% Fibo of the last drop from $291.22 to a low at $90 could still stand in the way of the price action targeting $220. On the flip side, support is expected at $200, $195 (previous day support), the confluence formed by the 50% Fibo and the 200-day SMA as well as the key ascending channel. If push comes to shove and declines extend, more anchorage in expected at $170 and the 50-day SMA.

According to the RSI, the downward action is likely to stay in place a while longer especially with the indicator retreating farther away from the overbought region.

ETH/USD daily chart

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