The second-largest cryptocurrency by market capitalization is struggling for an identity of its own lately. Ethereum tends to move with the BTCUSD.
We have heard Vitalik Buterin, the co-founder of Ethereum, talking about the ETH 2.0, several times. But so far, all we know is that ETH 2.0 might get delayed, yet again!
The correlation between ETHUSD and BTCUSD
Ethereum undoubtedly copies Bitcoin’s rallies and plunges. However, as compared to other Altcoins, Ethereum’s declines are less drastic.
But, as the second-largest crypto and commanding a massive user base, ETH investors would love for their favorite crypto to be a trendsetter and not a mere follower.
ETHUSD: Technical outlook and analysis
Let us take a look at the ETHUSD hourly-timeframe for the short-term momentum of Ethereum. Source: TradingView.com
The short term trend for Ethereum has turned strongly bearish. Most of the major technical indicators are giving a ‘sell’ signal. While this may be an excellent intraday trading opportunity, ETH holders wouldn’t be too happy.
The MACD indicator has turned strongly bearish. Before the dip on May 20, Ethereum was in a consolidation territory.
For the medium-term prediction, we look at the daily timeframe for ETHUSD.
We can see the region between $124- $140 highlighted by the rectangle. It was the support zone for Ethereum, on which ETH bounced back several times in the past.
Currently, Ethereum is trading at $208.53, and today’s range is $208.22 — $211.65.
ETHUSD is likely to face strong resistance from $216 – $220. In that case, Ethereum could reach lower than $200.
Both the MACD and the RSI are currently neutral on ETHUSD for the medium term.