- Ethereum moves in sync with other digital assets.
- ETH/USD needs to get back above $500 to ensure sustainable recovery.
ETH/USD has recovered from Wednesday’s low to trade at $486 at the time of writing. The second largest coin gained 1.8% since the start of the day, but it is still in red on daily basis. Current market capitalization is $48.8B and average trading volumes $2.1B.
Ethereum has been moving in sync with general cryptocurrency market, sensitive to negative news. It looks like investors are more likely to react to negative news and ignore positive developments.
While ETH/USD has recovered from recent lows, the upside momentum is not strong enough to take it above $500. Ethereum is still vulnerable to new losses as long as it stays below this threshold. Once it is cleared, we may proceed to the next local hurdle at $530, followed by $560 (200-SMA, hourly chart). On the downside, the support comes on Wednesday’s low $447. If it is broken, the selling pressure will increase and push ETH/USD towards $400 and to the ultimate bearish aim at this year lows ($364).
ETH/USD, the hourly chart