In summary:
- Bitcoin’s sell-off from yesterday has continued.
- A crypto-wide sell-off has seen Ethereum battling to maintain the $200 psychological level.
- The 200 Day moving average still provides a level of hope for ETH.
Yesterday’s news of the movement of 50 Bitcoin (BTC) from the early 2009 Satoshi era, caused the King of Crypto to dip momentarily. Once the rumor was debunked that it was not Satoshi Nakamoto moving his bags, many crypto traders and investors expected that BTC would hold its own in the markets and perhaps retain the two support levels of $9,500 and $9,300. However, at the time of writing this, Bitcoin is struggling to maintain the $9,050 area of support. The effects of the continual sell-off have had its effects on the entire cryptocurrency spectrum including Ethereum (ETH).
Ethereum (ETH) Struggling to Maintain the $200 Psychological Support Zone
Further checking the markets, we observe that yesterday, Ethereum also experienced a drop due to the news of the 50 Bitcoin supposedly belonging to Satoshi. As a result, ETH dropped from $213 to $203. The digital asset then bounced to around $210 before continuing on its downward trajectory. Ethereum is currently battling to maintain the $200 psychological support zone.
ETH’s 200 Day MA Still Provides Some Hope
Further looking at the 1-Day Ethereum chart courtesy of Tradingview.com, we observe the following.
- The Golden Cross previously identified is still valid despite the market sell-off.
- Short term support zones include $200, $197, $195, $189, $174, $166 and $158.
- The current price of ETH at $199 is still above the 50-day moving average (white), 100-day moving average (yellow) and 200-day moving average.
- With respect to support from the moving averages, the 200 Daily MA still provides solid support for the coming days as the ETH2.0 launch draws closer.
- The 200 daily MA offers this support at around the $174 price area.
As with all technical analyses, traders and investors are advised to keep an eye out for the price action of Bitcoin. BTC still has a major influence on the crypto markets and if it keeps dipping, so shall every alt-coin including Ethereum. Additionally, stop losses are advised to protect trading capital.
(Feature image courtesy of Unsplash.com)