- ETH/USD may have a hard time with a recovery above $200.00.
- COVID-19 will have an indirect influence on the market.
Ethereum (ETH) is changing hands at $197.70, down 1.4% since the beginning of the day and -2.65% on a day-to-day basis. The second-largest digital asset with the current market capitalization of $21.7 billion attempted a recovery above $200, but failed to hold the ground moving in sync with the broader market.
ETH/USD: Technical picture
From the short-term point of view, ETH/USD bulls may have a hard time trying to push the price of $200.00 in a sustainable way as there are a lot of technical barriers clustered above the current price. Thus strong resistance is created by a confluence of SMA50 and the middle line of the Bollinger Band on a 1-hour chart on approach to $200.50. It is followed by the upper line of the 1-hour Bollinger Band at $204.00. Once it is out of the way, the upside is likely to gain traction with the next focus on $212.00 (SMA100 1-hour).
Meanwhile, the way to the South is practically clear. The initial support is created by the lower line of 1-hour Bollinger Band below the current price. It is followed by the recent low of $190.17 and the lower line of 4-hour Bollinger Band at $186.20.
ETH/USD 1-hour chart
Ethereum developers at risk
As the FXStreet previously reported, TorusLabs Dapp creator Zhen Yu Yong (Zen) was diagnosed with COVID-19. However, at the end of February and on the beginning of March he attended ETHLondon hackathon and Ethereum Community Conference (ECC). Considering that the virus is highly contagious, the participants of both events should “take extra precaution.”
While this case is unlikely to produce a direct influence on ETH price movements, the sentiments may worsen due to increased panic and fear of further virus spread. Let’s see if projects start canceling conferences and events in the wake of COVID-19 outbreak.