Ethereum reverses early losses but failed to hold the 100-day moving average as the volatility rises ahead of the bitcoin halving event. Ethereum had one of the worst Sundays yesterday as it dropped from $210 to $180 mirroring the sharp drop in Bitcoin.
Crypto investors are waiting for the next big move after the bitcoin halving, so it is wise to see how the cryptocurrencies market will react to the event and then start a trading position.
Miners on Ethereum have hit the massive milestone of 10 million blocks mined since the inception of the project. ETH was created with the idea to design a decentralized international digital computer that will be able to execute smart contracts. The whole Ethereum network will shift to ETH 2.0 in the upcoming months and will be upgraded to a new security model.
Bitcoin also managed to turn positive after the morning losses and as of writing is 2.57% higher at 8,940, while Ripple price tests the 50-Day MA ahead of Bitcoin halving.
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Ethereum price is 0.29% higher at $188.21 as the price tries to stabilize after yesterday’s sharp sell-off. Ethereum breached yesterday the 100-day moving average and cancelled the recent bullish momentum. The technical outlook is now neutral for ETHUSD as it trades below the 100-day moving average but above the 200-day moving average. Traders should wait for a break below the 200-day moving average or above the 00-day moving average to initiate a position.
On the upside, initial resistance stands at $193.88 the daily top. The next resistance for ETHUSD will be met at $210.39 the high from yesterday’s trading session. In case of a break higher, the bulls will be looking for an extension above 216.75 the high from May 8.
On the other side, first support for Ethereum stands at 183.99 the daily low. The next level to watch in case of further correction is at 180.04 the low from yesterday’s trading session. Bears will regain control if the price breaks below the 200-day moving average at $174.36.