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Ethereum price analysis: ETH/USD retraced from $300 handle, as Ethereum developers chops miners rewards

  • Ethereum is rangebound after a failed attempt to break above $300.
  • Ethereum developer team held regular online meeting.

ETH/USD is sitting in a tight range marginally above $290 handle. The second largest coin by market value tried to break above critical $300, but the movement proved to be unsustainable. The coin has lost 1% since the beginning of the day and since this time yesterday, moving in lockstep with Bitcoin and other digital assets. Ethereum’s capitalization is registered at $29.8B, while an average daily trading volume is set at $1.2B. This is the lowest level since August 26.  

Meanwhile, Ethereum developers held their regular YouTube meeting on August 31 and decided to include the difficulty bomb solution into the upcoming Constantinople hard fork, which is supposed to smooth the transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS)  consensus algorithm. Apart from that the core dev team decided to reduce the size of the reward to 2 ETH.

Ethereum’s technical picture

ETH/USD dropped below SMA50 (one hour chart) at $292.60 during early Asian hours, but it is still well above month SMA100 and SMA200 ($286.76 and $284.56 respectively). These technical levels create solid short-term support for the coin, meaning that the downside will be limited. However, if this area is cleared, the sell-off  may be extended towards  $270 followed by $258 (August 22 low).  

On the upside, $300 handle remains unattainable altitude, guarded by 61.8% Fibo retracement daily and 23.6% Fibo retracement monthly. Once it is cleared, the $322 (downside trendline) will come into focus.

ETH/USD, 1-hour chart

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