Ethereum Price Analysis: ETH/USD sliding down on PlusToken liquidation concerns

Ethereum hit the recovery high at $134.50 and resumed the decline. At the time of writing, the second-largest digital asset is changing hands at $127.40, off the intraday low of $125.95. ETH/USD has lost about 1% of its value both on a day-to-day basis and since the beginning of the day. 

PlusToken woes

ETH has been on thin ice since Thursday due to the rumors that the founders of PlusToken Ponzi scheme have started to liquidate their ETH coins. As the Whale Alert service reported about 789,525 ETH tokens transferred from PlusToken wallet to an unknown wallet, many industry players were expecting a massive ETH dump.

These sentiments weighted on ETH in recent hours and pushed the coin towards the local support created by the lower line of the daily Bollinger Band under $126.00.

Binance sweetens the pill

The Malta-based cryptocurrency exchange increased the maximum leverage on Etherum Futures contracts to x75. Trading on margin allows maximizing profits with small initial investments; however, it is considered risky as investors may quickly lose all their money if the market goes against them.

ETH/USD: technical picture

On the intraday charts, the initial resistance is created by the upper line of 4-hour Bollinger Band at $133.40. Once it is out of the way, we may witness an extended recovery towards December 18 high of $134.85 and psychological $135.00.

On the downside, a sustainable move below $126.0 will increase the bearish pressure and bring the lower line of 4-hour Bollinger Band ($120.85) back into focus. Once it is out of the way, the sell-off is likely to gain traction and take the price to $120.00 and, potentially, to the recent low of $116.40.

ETH/USD, the 4-hour chart