- ETH / USD has recovered from the Asian minimum, but the momentum is weak.
- $ 150 is critical to asserting that ETH has hit the bottom.
Ethereum hit a minimum of $ 124.48 during the early Asian hours before recovering to $ 135 at the time of writing. The third largest asset with a current market value of $ 13B remains in the oversold territory due to lower volatility. ETH / USD stabilized after Tuesday's crash, however, downward momentum could increase traction later in the day when European operators enter the market.
ETH / USD has lost more than 82% from the beginning of the year. The currency is trading at the lowest level since May 2017 between increasingly bearish feelings. A boom in ICO that supported Ethereum over the course of 2017 could turn against the currency, increasing downward pressure when projects sell their proceeds to finance their daily needs.
Technical framework of Ethereum
At the intraday level, ETH / USD is supported by a psychological area of $ 130.00, which includes Pivot Point Monthly Support 3 and SMA5, one hour. Once eliminated, the downside can be extended to the Asian minimum of $ 124.48 and to $ 124.24 (Tuesday's minimum). The main support is $ 120.00. For the time being it is likely that the sell-off will stop.
Considering that the Relative Strength Index (1-hour) is turning down, the upward correction may be short-lived. Basically, the bulls must take the price over $ 146.25 (SMA50, 1 hour) and $ 150.00 to mitigate bearish pressure.
ETH / USD, 1 hour chart