- ETH/USD recovers from multi-month lows, but still vulnerable.
- Recovery above $120.00 is needed to mitigate downside pressure.
Ethereum has recovered from the Sunday’s low of $100.92 to trade at $114.50 at the time of writing. The third largest digital coin has lost nearly 34% of its value during the previous week amid global cryptocurrency sell-off intensified by the internal problems of Ethereum network.
ICO projects and miners are selling their proceeds to cover operational expenses, increasing the downside pressure on ETH, while a serious bug revealed by Level K company is undermining traders’ confidence.
Ethereum has gained over 8% in the recent 25 hours, however, it is not out of woods yet. The price needs to regain $118 (DMA5) and $120 handle to improve the short-term technical picture and create a favorable setup for further recovery towards psychological $130.00 strengthened by Pivot Point 1-month Support 3.
From the longer-term point of view, critical resistance area is created by psychological $200, however, the price needs to clear the lower border of the previous range at $180 and DMA100 (currently at $190) before ETH bulls get a chance to try their hand at $200.
On the downside, there are few support levels until the recent low of $100.92, which makes ETH/USD vulnerable to new losses. The critical $100 is likely to attract buyers, though, once it fails, the sell-off may start snowballing with the first barrier at $70.00 (the lowest level since April 2017).
The Relative Strength Index (daily chart) stays in the overbought territory, with no signs of reversal as of yet.
ETH/USD, the daily chart