- ETH/USD stuck marginally above $600 with little progress.
- Parity update fails to impress traders focused on SEC announcements.
Ethereum recovered from Wednesday’s lows and settled above $600 handle, however further upside is effectively capped by $100-DMA currently at $610. Lack of follow-through may signal that the recovery is too weak to ensure sustainable growth. The second largest coin is 1% higher on daily basis with the current market value of $61.1B.
Parity Technologies announced an important update to Parity client that eliminates the major vulnerability. The developers as customers to move to the latest version as soon as possible to prevent issues. Back in 2017 Parity bugs resulted in thousands of Ethereum getting lost.
Read a detailed story about Parity announcement here.
While this is considered to be a good development for ETH, the coin is driven by general sentiments on cryptocurrency markets, dominated by regulatory jawboning. Namely, SEC’s Clayton confirmed that ICOs are securities, speaking at CNBC on Wednesday.
Ethereum technical picture
Looking technically, ETH/USD needs to clear 100-DMA at $610 and proceed to the critical resistance created by 23.6% Fibo at $652. Once above, the recovery may be extended to $700 with 200-DMA registered at $706. On the downside, the support is created by 200-SMA (hourly chart) at $588 and followed by $500.
ETH/USD, the hourly chart
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