Tanya Abrosimova
Independent Analyst
- ETH/USD has recovered from Asian low, but the momentum is weak.
- $150 is critical for claiming that ETH has bottomed out.
Ethereum touched $124.48 low during early Asian hours before recovering to $135 by the time of writing. The third largest asset with a current market value of $13B stays in the oversold territory amid decreased volatility. ETH/USD has stabilized after Tuesday's collapse, however, the downside momentum may gain traction later during the day, when Europen traders join the market.
ETH/USD has lost over 82% since the beginning of the year. The coin is trading at the lowest level since May 2017 amid increasingly bearish sentiments. An ICO boom that supported Ethereum during 2017 might turn against the coin, increasing the downside pressure as the projects sell their proceeds to finance everyday needs.
Ethereum's technical picture
On the intraday level, ETH/USD is supported by psychological $130.00 area, which includes Pivot Point Monthly Support 3 and SMA5, 1-hour. Once it is cleared, the downside may be extended towards the Asian low $124.48 and to $124.24 (Tuesday's low). The pivotal support lies with $120.00. It is likely to stop the sell-off for the time being.
Considering that the Relative Strength Index (1-hour) is turning downwards, the upside correction may be short-lived. Basically, the bulls need to take the price above $146,25 (SMA50, 1-hour) and $150.00 handle to mitigate the bearish pressure.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.