The second-largest crypto is trying its best to regain the lost ground. ETHUSD breached its support level of $218.5 earlier in the day. Since then, the buyers swooped in, and ETHUSD is above the crucial support level now.
The top three cryptos are having a tough time this month. BTCUSD crossed the $10k mark twice this month and rapidly declined. XRPUSD is the hardest hit crypto.
ETHUSD shows glimpses of recovery
Ethereum formed the day’s low of $217.79. Buyers found it to be an excellent opportunity and jumped in, pulling ETHUSD higher. It is currently trading at $224.
The woes in Wall Street are encouraging buyers in the crypto markets. Ethereum’s small gains can also be attributed to the awful opening of the Dow Jones Industrial Average Index (DJX) today. Dow Futures are more than 600 points down.
Robert Kiyosaki, the famous entrepreneur and author of ‘Rich Dad’ Poor Dad’ fame, is back at advocating the importance of investing in Gold, Silver, and cryptocurrency.
Technical analysis of ETHUSD
- Short-term outlook: Extremely Bearish
- Medium-term: Bearish
The four-hour ETHUSD timeframe shows that Ethereum dropped below the lower band of the Bollinger Bands. Despite its recent recovery, it is still clinging to the lower level.
Check ETHUSD Chart on TradingView.
Ethereum will face several resistance levels from here. The dynamic 20-period Exponential Moving Average will be a significant barrier.
ETHUSD, however, has reliable support levels. The current support level at $218.5 proved resilient as Ethereum retested this level and bounced back. Moreover, the 200-period Simple Moving Average line is providing dynamic support to ETHUSD.
The increase in the traded volume in the four-hour chart is a reasonably good signal for investors. It is vital to understand that Ethereum is not yet out of the woods. Therefore, traders might tink about placing conservative trades on ETHUSD at the moment.