- Ethereum's technical picture implies that the coin is vulnerable to further losses.
- The daily SMA100 creates strong support at $300.
Ethereum (ETH) hit the recent high at $488.88 on September 1 and has been in free fall ever since. The second-largest coin by the market capitalization dived to $335.23 on Saturday before recovering to $354 by the time of writing. ETH has lost over 6% on a day-to-day basis and over 10% in the last seven days amid a major sell-off on the global cryptocurrency market.
ETH/USD: The technical picture
Ethereum's price dropped below the daily SMA50 at $370 and extended the sell-off towards $335 during early Asian hours on Saturday. While the losses have been partially recovered, the short-term trend is still bearish as long as ETH stays below the above-said SMA. A sustainable move above $370 will improve the immediate technical picture and allow for an extended recovery towards the psychological $400. A move higher will negate the bearish scenario and bring the resistance of $440 into view.
ETH/USD the daily chart
Meanwhile, the RSI on a daily chart points downwards, signaling that strong upside momentum is less likely at this stage. A failure to regain the ground will worsen the technical picture and lay the ground for the further sell-off towards psychological support created by $300. This barrier is reinforced by the daily SMA100 and has the potential to slow down the bears.
IntoTheBlock's "In/Out of the Money Around Price" (IOMAP) model reveals that 3.76 million addresses have their break-even point around $300. This cohort adds credibility to this support area and suggests that bears will struggle to push prices down. However, if they succeed, another crucial barrier of $244 (daily SMA200) will come into view.
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
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
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.