Tanya Abrosimova
Independent Analyst
- ETH/USD recovery momentum is fading away on approach to strong resistance.
- South Korean news might be behind the correction.
Ethereum is changing hands at $569, off the Asian high registered at $586. ETH/USD is rangebound amid low trading activity typical for Asian markets. The second largest coin gained nearly 10% since this time yesterday, increasing market capitalization to $57.1B.
Looking technically, ETH/USD strong buying interest around $500 threshold stopped the carnage on Tuesday, however, $600 handle remains unbroken, which means that ETH is not out of woods yet. This resistance is followed by a more serious hurdle, created by a combination of 23.6% Fibo at $652, 100-DMA currently at $629 and 50-DMA at $642. Only a sustainable movement above this area will signal that an extended recovery is in place. Meanwhile, the downside potential is limited by above-mentioned $500 support. Once it is cleared, the coin may fall all the way down to $400 and $362 (April 2 low).
The news that National Assembly of South Korea is looking to establish a legal basis for cryptocurrency trading and ICOs might be considered as one of the factors behind the recovery across the cryptocurrency market.
“We will also establish a legal basis for cryptocurrency trading, including permission of ICOs, through the National Assembly Standing Committee. We need to form a task force including private experts in order to improve transparency of cryptocurrency trading and establish a healthy trade order,” said the Committee of National Assembly as quoted by Business Korea.
ETH/USD, the daily chart
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