- Ethereum is rangebound on Thursday trading.
- Lack of institutional interest may increase pressure on the digital assets.
ETH/USD is consolidating losses incurred during Wednesday’s carnage. Looking technically, the rebound above $250 is a must for a more sustainable recovery; however, the market is still too sleepy to start squeezing the shorts.
Bitcoin is the traditional trend-setter, so Ethereum, the second largest coin by market value, is likely to follow the lead of BTC, which is also sitting quietly in a narrow range, mostly unchanged since the beginning of the day.
The industry experts lay the blame on Goldman. The bank abandoned its plans to tap the crypto universe, joining the ranks of institutions that delayed or canceled cryptocurrency related projects.
“The expectation of adoption by Wall Street has been a major theme for the cryptocurrency market for the last year, so any kind of updates on that can certainly move the prices. Even if it’s not true, it should be enough to cause a minor selloff like this in cryptocurrencies,” Mati Greenspan, the senior market analyst at eToro commented in a phone interview with Bloomberg.
While Goldman explained the decision by lack of conclusion on the scope of the digital asset offering, the market players feel that institutional players are somewhat disappointed and concerned by obscure regulation.
Ethereum’s technical picture
As it is visible on a 15-min timeframe, the nearest resistance is created by SMA50 at $230. Once it is cleared, ETH/USD will be able to proceed to $240 and $244 (SMA100). Psychologically important $250 is followed by $265 (SMA200) and the broken trendline at $276.
On the downside, the ultimate support is $200 handle.
ETH/USD, 15-min chart
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