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The cryptocurrency market swooned at the start of the trading week but managed to limit losses afterward. The no.2 largest crypto has had a successful swing from $1,700 lows in July to a monthly high of $3,378 in August. In the near term, the trend seems to have shifted with Ethereum currently under heavy selling pressure at $3,350, preventing it from surging over previous highs. However, ETH refused to close below the psychological level of $3,000 in the daily chart and the supportive trendline, raising optimism that the upward pattern could see further continuation. ETH/USD finds support at $3,056 during the Thursday session, following a bruising sell-off over the entire cryptocurrency market overnight. At the time of this post, ETH/USD was trading at $3,103 after a drop from a $3,251 intraday high. The recent price movement was sparked by Whales intervention talks that $500M in Ethereum moved on Tuesday and Wednesday in 13 distinct transactions. In addition, Ethereum options traders are closely watching the expiration of $820 million monthly options on Friday, Aug. 27.
Key Levels
Resistance Levels: $3,700, $3,500, $3,350
Support Levels: $3,000, $2,700, $2,500
ETH/USD Daily Chart: Ranging
ETH/USD Daily Chart
The ETH/USD pair is struggling to maintain its positive momentum after meeting resistance in the $3,378 area. Nevertheless, the rebound from Thursday’s one-week low of $3,056 appears to stall prices testing below the Psychological level 0f $3,000. To validate a bullish reversal, we still need that push and daily closure out of a negative turn beyond $3,200.
Looking at the momentum indicators, the daily moving averages (MA 50 & MA 200) are still rising but the Relative Strength Index appears to have peaked within the overbought zone, and now shifting into a weakening bias in the medium term below line 60. If today’s selloff accelerates, the price could seek support from the next level at $2,900.
ETH/USD 4-Hour Chart: Ranging
ETH/USD 4-Hour Chart
The fading bullish momentum on the lower time frame of the 4-hour chart warns of a recovery stall as the moving average (MA 50) set up around $3,200 stays on track to limit ETH/USD advance in the near term. The $3,200 level is the nearest barrier, which the bulls need to successfully overcome to rally towards the previous peak of $3,378.
On the downside, a step below the trendline could find immediate support near its 4-hour moving average (MA 200). On the breach of the support, the $2,700 handle could be the next pivot point if selling forces persist. All in all, ETH/USD is still looking neutral in the very short-term picture. A close above $3,200 could confirm additional upside corrections.
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