Ethereum held the $228 support zone earlier this week when Bitcoin dropped to $9,110.
With BTC exhibiting bearish signs, a drop could cause Ethereum to break this support zone.
Once broken, the 50-day moving average provides adequate support at around $218.
Ethereum is still holding its own in the crypto markets ahead of ETH2.0 and amidst speculation of a delayed launch.
The weekly close is only a few hours away and Ethereum is trading at $234 at the time of writing this. Earlier this week, ETH retested the $228 support zone. This move down was a result of Bitcoin dropping from around $9,950 to $9,110 in less than 24 hours. The drop by Bitcoin had a ripple effect on the entire digital asset spectrum that has continued to linger. Additionally, BTC seems to be in bear territory for the coming week and a move down could further affect Ethereum’s bullish momentum ahead of ETH2.0.
50-Day Moving Average Next Level of Support for Ethereum
Revisiting the Daily ETH/USDT chart, we observe the following.
Ethereum has failed to break and hold the $250 resistance zone several times in a manner similar to how Bitcoin has failed to break the $10,000 psychological price level.
$228 is a level of strong support for Ethereum.
If this support zone breaks, the 50-day moving average (white) could provide an area for a bounce at around the $218 price level.
However, investors of Ethereum are looking beyond the launch date and are opting to accumulate more Ethereum in anticipation of staking.
Additionally, the number of Ethereum addresses holding 0.1 ETH or more has seen a sharp increase since the year began. Below is a Tweet from the team at Glassnode providing a graphical representation of the increment of ETH addresses holding 0.1 ETH or more from as far back as 2016.
📈 #Ethereum$ETH Number of Addresses Holding 0.1+ coins just reached an ATH of 2,984,080.000
Previous ATH of 2,984,040.000 was observed on 13 June 2020