- ETH / USD gained 5%, but the upside could be limited.
- The short-term technical picture implies that the sale can be resumed.
Ethereum is changing hands at $ 112.13 at the time of writing. The third largest digital currency has gained over 5% since this time, Tuesday, on the whole of the recovery of the cryptocurrency market. ETH / USD fell shortly below $ 100, but the break turned out to be false when the currency returned to the previous range very quickly. The market value of Ethereum is now recorded at $ 11.5 billion, average daily trading volumes – $ 2.3 billion.
Meanwhile, Vtalik Buterin, the creator of Ethereum, believes that blockchain is the ideal solution for the global payment system and the creation of cryptocurrencies. Other cases of use are doubts or require much more time for development and adoption.
"Sometimes it's for marketing hype, sometimes it's just people who are genuinely enthusiastic about blockchains and want the thing I'm personally excited about and their work aligns more … In some cases, I think it leads to a lot of lost time, "he said in the margins of Devcon 4 in an interview with Quartz.
Technical framework of Ethereum
Local support is located in an area of $ 109.45 / 50 enhanced by SMA5 (4 hours) and SMA50 (1 hour). Once canceled, the sell-off can be extended to the recent lows of $ 100.89 and $ 100 psychological where there is likely to be a new buying interest.
On the upside, the short-term recovery is limited by a $ 118 congestion area that has blocked the bulls twice on Monday. The next obstacle was created from $ 120 and $ 122.56 (SMA200, 1 hour).
The Relative Resistance Index (1 hour chart) is reversing downwards, which means that bulls will have difficulty pushing ETH above the above resistance levels.
ETH / USD, 1 hour chart