- ETH/USD bulls failed to develop a follow through after the price broke above the psychological $300.
- A strong support is created by the short-term upside trendline.
Ethereum, the second largest cryptocurrency with the current market capitalization of $33.2 billion, has recovered from the recent low of $303.00 to trade at $307.5 by press time. However, the coin is still 1.5% lower from this time on Tuesday despite the upside momentum during early Asian hours. A sustainable move above $300 handle has improved the technical picture, but now we need to see a follow through to ab=void another bearish leg.
Ethereum's technical picture
The initial support for ETH/USD is created by $303.00. This barrier is strengthened by SMA100 (Simple Moving Average) on 4-hour chart. It has stopped the sell-off twice recently. Once it is out of the way, the downside may be extended towards $296 (SMA50 4-hour) and $285 (the upside trendline from June 9 low coupled with the lower edge of 4-hour Bollinger Band).
On the upside, the local resistance is created by the upper edge of the 4-hour Bollinger Band at $322 and followed by the upper edge of the 1-day Bollinger Band at $328. Once these barriers are cleared, the upside momentum will gain traction with the next focus on $342.00 (the highest level since June 27). A sustainable move above this handle will signal that the correction is over.
ETH/USD, 4-hour chart
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A strong support is created by the short-term upside trendline.