- A move below $180.00 has worsened the short-term technical picture.
- The significant support is created on approach to 170.00.
The second-largest cryptocurrency with the current market capitalization of $19.3 billion has broken below $180.00 to trade at $178.70 at the time of writing. ETH/USD has lost 1.2% on a day-on-day basis and stayed unchanged since the beginning of the day. Basically, Ethereum is moving in sync with Bitcoin as there are no clear fundamental reasons that could be used to explain the decline.
Ethereum’s intraday technical picture
Looking technically, initial support is created by a confluence of the lower line of four-hour Bollinger Band and, SMA50 (Simple Moving Average) on approach to $177.50. This barrier is closely followed by SMA100 four-hour on approach to $177.00. Once it is out of the way, the sell-off is likely to gain traction with the next focus on the intraday low of $175.50.
On the upside, the resistance is created by the middle line of one-hour Bollinger Band and SMA100 on the one-hour chart at $179.50, followed by psychological $180.00 and SMA50 on one-hour chart currently at $180.50. We will need to see a sustainable move above this handle for an extended recovery towards this week’s high at $186.12.