Ethereum Chart Update: ETH/USD vulnerable to the downside correction towards $247.00
- 2nd June 2020
- Posted by: Hakeem
- Category: Crypto, FOREX LATEST NEWS DAILY, FOREX MARKET ANALYSIS
- ETH/USD broke outside the recent range and hit the highest level since February.
- The technical picture implies that the price may extend the retreat before another growth attempt.
Ethereum (ETH) has moved outside the recent range and hit the highest level since February 25 at $253.47. At the time of writing, ETH/USD is changing hands at $252.55 amid a strong bullish trend. The coin has gained over 6% since this time on Monday and 1.6% since the start of the day. Ethereum is the second-largest digital asset with the current market value of $28 billion and an average daily trading volume of $11 billion.
According to Intotheblock data, nearly 57% of all ETH holders are making profits at the current price. Over 1.3 million addresses holding 2.36 million ETH are clustered in the area $255-$268 that will serve as the next strong resistance.
ETH/USD: Technical picture
On the intraday chart, ETH/USD is moving within an upward-looking Bollinger Band channel with the upper boundary at $255.00. This level is regarded as an initial resistance that needs to be cleared before the price moves towards $260.00. On the downside, a sustainable move below $250.00 will open up the way towards the net support at $247.00 (the middle line of the 4-hour Bollinger Band and the previous recovery high). It is followed by 1-hour SMA50 at $240.00).
ETH/USD 1-hour chart
On the daily chart, ETH/USD moved outside the Bollinger Band. Considering that the price tends to mean revert, the downside correction looks likely at this stage, with the initial target at $247.00 created by the upper line of the daily Bollinger Band. Meanwhile, the daily RSI stays flat close to the overbought territory, which means the downside momentum may be limited at this stage.