Ethereum market overview: ETH/USD paralyzed; this support lacks legs

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  • ETH/USD embarked on an upward trajectory towards $300 but formed a high at $280.17.
  • A break above $250 will see the investors’ confidence increase.

Ethereum is trading at $246 following declines of 5.5% on Monday. The incredible rise last week had Ethereum spewing fireworks across the cryptocurrency universe. While taking advantage of Bitcoin surge to $8,400, ETH/USD embarked on an upward trajectory towards $300 but formed a high at $280.17. However, the entire market reversed the trend as cryptocurrencies posted double-digit losses. It was as though Ethereum had come out the rags ascended into riches but return right back to the rags.

The 100 Simple Moving Average (SMA) failed to offer support but essential support was formed at $220. Following the support at $220, Ethereum buyers reversed the trend taking the price above $240 and $260 resistance levels respectively. Ethereum formed weekly high at $264.88 before reversing the trade as per intraday chart.

Meanwhile, the price is holding tight to $240 while the 100 Simple Moving Average (SMA) capping the gains on the hourly chart. A break above $250 will see the investors’ confidence increase in the slightly bullish trend. However, if the price slips below the short-term support, it is likely that Ethereum will trend lower to the recent support at $220. At the momentum, technical indicators show that the price is neither bullish nor bearish a sideways trading could takeover.

ETH/USD 1-hour chart

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