Ethereum Price Analysis: ETH bears must fight for $193.00 to the last drop of blood

By May 6, 2020Ethereum
Click here to view original web page at www.fxstreet.com
  • ETH/USD has recovered from the intraday low, but the upside momentum is weak.
  • The critical support is created by the trend line on approach $193.00.

ETH/USD touched the intraday low at $195.17 and recovered to $199.50 by press time. The second-largest digital asset attempted a recovery above $219 on Sunday, May 3, and has been trading with bearish bias ever since. ETH/USD has lost over 6% in recent 24 hours and 4.5% since the beginning of Monday.

Currently, 35% of Ethereum addresses are in the money. About 1.63 million addresses holding 3.36 million ETH have their breakeven point in the range from $202 to $216. Once this area is cleared, the upside momentum may gain traction with the next focus on the recent high at $227.36.

ETH/USD: Technical picture

On the intraday charts, ETH/USD needs to regain ground above $206.00 area to improve the short-term technical picture. This resistance is reinforced by 1-hour SMA200 ($205.70). Once it is out of the way, the upside is likely to gain traction with the next focus on $210.00 with 1-hour SMA50 and SMA100 located around this psychological barrier. A sustainable move above this area is needed to get the recovery back on track and open the way to $220.00, followed by the above-said high at $227.36.

On the downside, a sell-off to $195.300-$195.00 will increase the short-term bearish pressure. The lower line of the 1-hour Bollinger Band at $195.30 may slow down the bears, however, if this support area is cleared, ETH/USD will go down to the upside-looking trend line from March 13 low. This is a pivotal level that separates the downside correction from the resumed bearish trend. This line is closely followed by psychological $190.00 and daily SMA100 that may serve as an additional backstop and trigger the recovery.

ETH/USD 1-hour chart

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

The critical support is created by the trend line on approach $193.00.

ETH/USD touched […]

Leave a Reply