Wall Street recovered significantly on Friday after a disastrous decline on Thursday. The drop on Thursday was felt in the cryptocurrency market as well.
The top cryptos such as BTCUSD, ETHUSD, LTCUSD, etc. dropped as investors started to flee and cashed out. Bitcoin’s Bearish momentum only seems to be increasing, whereas the recent drops haven’t taken a hit on Ethereum.
ETHUSD is better poised as compared to BTCUSD
The deliverable, as well as traded quantities in ETHUSD, are far higher than that of Bitcoin. Moreover, the accumulation of more than 32 ETHUSD in the Ethereum wallets is a plus point.
ETHUSD is coming soon with the POS or Proof-of-Stake mechanism for its network. Several Ethereum users are ready to brace the staking mechanism.
It shows that in the long haul, people are increasingly Bullish on ETHUSD.
On top of all these, the US Federal Reserve and various central banks around the world are continuing to print an excessive amount of money. They call it liquidity infusion. However, extreme liquidity infusion will sooner or later cause Deflation. That is when the fiat currency will lose its value.
ETHUSD price analysis
The daily chart for ETHUSD shows that the daily traded volume is decent. ETHUSD is so far above the dynamic support level of the 20-day Exponential Moving Average.
Ethereum is currently trading around $236. The support level is at $218, while the resistance is at $263. As of now, the downside risk is limited. The RSI is neutral.
Check ETHUSD Chart on TradingView.
Cryptocurrency is the future of the Financial world. However, the currency should be in a user-friendly network. And Ethereum has the potential to be a disruption in the world of Finance.