- ETH/USD is sliding down amid technical correction on the market.
- Ethereum registered a strong growth of trading volumes in recent days.
ETH, the second-largest digital asset with the current market value of $29 billion, hit the highest level of 2020 at $277.39 on February 13. By the time of writing the coin has retreated to $261.40 amid technical correction on the cryptocurrency market. ETH/USD has lost nearly 2% in recent 24 hours and stayed mostly unchanged since the beginning of the day.
ETH trading volumes on the rise
Apart from the spectacular price increase, ETH registered a strong growth of trading volumes. Ethereum’s average daily trading volume jumped above $25 billion from $16 billion at the beginning of the week, while an average transaction size retreated to $1,000 according to the data provided by Intotheblock.
According to Skew Analytics, ETH had the most active session of the year on February 12 as the volume traded on BitMEX, Huobi & OKEx exceeded $1 billion.
ETH/USD: Technical picture implies further downside correction
On a 1-hour chart, ETH/USD moved below SMA50. This line located under $265.00 now serves as an initial resistance that needs to be taken out. Once this happens, the recovery may be extended towards psychological $270.00, followed by the upper line of 1-hour Bollinger Band on approach to $271.00. A sustainable move above this barrier will bring the recent high above $277.00 back into focus.
On the downside, the initial support is created by $260.00. If it is broken, the downside is likely to gain traction with the next focus on $252 ( the middle line of 4-hour Bollinger Band) and psychological $250.00. SMA200 1-hour at $245.50 should stop the sell-off and attract new buyers to the market.
ETH/USD 1-hour chart