ETHUSD recovered from the recent setbacks. The Bulls are fighting hard to keep Ethereum one of the most popular cryptos. Several people believe that Donald Trump might soon announce another relief package for fighting the Coronavirus crisis.
It prompted a quick pullback of BTCUSD from the clutches of the Bears. And Ethereum followed soon after. The technical indicators for ETHUSD show that the market is in an indecisive state currently.
What’s in store for ETHUSD – A technical narrative
The daily chart for ETHUSD shows the recovery as well as the consolidation. Ethereum escaped a harsh Bearish territory, but the Bulls are still having a hard time.
A closer look at the daily timeframe shows that the red candles surpassed the average daily traded volume. It indicates that the sellers are overpowering the buyers, which is a highly Bearish confirmation.
The following are important technical levels for Ethereum:
- Crucial Resistance levels: $245, $262
- Support levels: $218, $210
Looking at a shorter timeframe, we can see that ETHUSD might give excellent swing trading opportunities. The one-hour chart for ETHUSD shows that Ethereum is currently trading above the 50-period SMA. It indicates ETHUSD is Bullish in the short term.
However, ETHUSD is much below the 200-period SMA, which indicates Ethereum is Bearish in the long term.
The indecisiveness in the market is prominent in the shorter timeframe as well.
Ethereum 2.0 might prove to be a turning point
Ethereum staking is slowly yet steadily gaining attention. Users are becoming familiar with Proof-of-Stake or POS mechanisms. As it starts gaining popularity, the adoption rates would exponentially increase.
So far, quite many institutions showed interest in Eth 2.0. According to research by a top consulting and auditing firm in the US, the adaptability and the curiosity towards Ethereum 2.0 are pretty high.
It could prove to be a significant boon for ETHUSD!