Ethereum tests 300.00 area as market sentiment improves

InvestingOnline.com 29/08/2018, 00:14

Ethereum, the second largest cryptocurrency by volume, is testing the 300 level against the US Dollar for the first time since August 22 as the pair is trading positive for the second day in a row. ETH/USD seems ready to launch an attack to the 350.00 area, but a consolidation above the 300.00 is crucial as the pair needs to build a floor for the next upside leg.

News that bitcoin shorts are declining in the Commitment of Traders report by the CFTC, the press release where Morgan Creek Capital Management announced a new digital asset index fund, and big news outlet Quartz is launching a newly paid cryptocurrency newsletter are improving market sentiment.

ETH/USD is currently trading 3.05% positive on Tuesday at 296.95, testing the 300.00 area with a one-week high of 298.15.

ETHUSD daily chart August 28

Earlier in the week, ETH/USD was trading in a small range between 270 and 285 as the unit was waiting for a catalyst. But on Monday, Ethereum set a floor at 270.00 and it started to recover ground to test the 20-day moving average at 294.00 and the important resistance area at 300.00.

Technical conditions for the ETH/USD remains bearish but indicators are improving. MACD is still below its midlines but heading to the center; while RSI is showing some upside recovered in the short term. Moving average remains, however, aligned to the south.

To the upside, the pair needs to break above the 300.00 area to build a floor where start another upside leg. Above there, next resistance is at 320.00, August 17 and 18 highs, and then the 50-day moving average at 385.00.

To the downside, if the pair is rejected by the 300 area, it will return to the 280.00 level and if the pair breaks the mentioned level, next supports are at 250.00 and 200.00.