ETH/USD at risk of further sell-off

  • ETH/USD is sidelined amid directionless trading.
  • Lack of recovery momentum is a bad sign for ETH bulls.

Ethereum, the second largest coin by market value, is changing hands at $207.44, down 0.7% in recent 24 hours.  ETH/USD is blocked in a claustraphobic range just as all other major altcoins out of top-10. Ethereum’s current market value is $21.3B, while the average daily trading reduced to $1.3B from $1.4B on Wednesday.

Ethereum’s technical picture

While ETH/USD stays above critical $200, failure to extend the recovery towards recent high at $230 might mean trouble for Ethereum. Currently the market is gripped with indecisoin, which leads to low trading activity and non-existant volatility. As seen on the charts, momentum disappeared long ago, while the Relative Strength Index (RSI) stays around 50, which confirms the rangebount conditions. The local resistance is produced by SMA200 (4-hour chart) at $219. Once it is out of the way, the recovery may be extended towards $227-$232 congestion zone.

On the downside, the local support comes at $205, created by SMA50 (4-hour) and followed by psychological $200. A sustainable movement below this level will trigger more sell-off towards $186 (October 11 low).

ETH/USD, 4-hour chart

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