Ethereum Price Clings On 50-day EMA As $240 Beckons Profusely

  • Ethereum recovers from $228 support but gains towards $235 stall under $235.
  • ETH/USD bulls have just enough power to prevent losses under $225 in favor of consolidation.

Ethereum plunge on Thursday followed the return of some volatility in the market that was mainly attributed to top Twitter accounts being hacked. For a period of more than a week, Ether had remained pivotal at $240. Before that, ETH/USD has blasted north, testing the resistance at $245. Unfortunately, the drab action across the cryptocurrency market and particularly Bitcoin, made it difficult to sustain gains towards $250, instead, the price adjusted to $240.

Related reading: Ethereum Price Analysis: Why ETH/USD Must Break EMA 50 Resistance For A Rally To $250?

The breakdown pushed Ethereum below several key support areas including $235, the 21-day Exponential Moving Average (EMA) and $230. The areas that held their ground were the short term support at $228 and the 50-day EMA. Most analysts believe that if Ethereum drops under $225 support, it would mark the end if the ‘altcoin season’ that is still in its early stages.

For now, the price is still holding above the 50-day EMA. However, recovery towards the support turned resistance at $235 is an uphill task. Technically, Ethereum bulls have just enough power to hold above the key support levels at $230, the 50-day EMA and $228. The RSI, for instance, is motionless at 50. This is a situation that mainly leads to consolidation.

ETH/USD daily chart

ETH/USD price chart
ETH/USD price chart by Tradingview

The same sideways trading action is reinforced by the MACD. The indicator is also clinging to the midline but a slight bearish divergence hints that losses are not out of the picture. In other words, although there are signs of a recovery, Ethereum has not been accorded the right parameters for a breakout. Besides, the volatility across the cryptocurrency market is still at the lowest levels in the last three months.

Read more: Is DeFi Sustainable In The Long Term: Ethereum Price Stuck In Consolidation

Ethereum Key Intraday Levels

Spot rate: $233

Relative change: 0.05

Percentage change: 0.02%

Trend: Bullish

Volatility: Low

Summary

Ethereum Price Clings On 50-day EMA As $240 Beckons Profusely

Article Name

Ethereum Price Clings On 50-day EMA As $240 Beckons Profusely

Description

Ethereum recovers from $228 support but gains towards $235 stall under $235.
ETH/USD bulls have just enough power to prevent losses under $225 in favor of consolidation.

Author

John Isige

Publisher Name

Coingape

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Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.

Disclaimer
The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.



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John Isige , 2020-07-17 05:13:18 ,

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