Ethereum Price Analysis: 20-day SMA Keeps Preventing Further Downward Plunge For ETH
Daily Ethereum ETH Price Forecast
- Ethereum price crashed after meeting resistance at 50-day SMA.
- The MACD indicates sustained bullish sentiment.
Since June 30, the Ethereum price has been hovering between $2,100 and $2,325. In this time period, ETH managed to flip the 20-day SMA from resistance to support and reverse the MACD from bearish to bullish. Let’s take a closer look.
Ethereum Price Sits On Top Of 20-day SMA
On July 6 and July 7, the Ethereum price has faced continuous rejection at the 50-day SMA, which forced ETH to crash from $2,320 to $2,150, dropping below the $2,300 and $2,200 psychological levels. Currently, Ethereum is priced at $2,135 and sitting above the 20-day SMA. The Bollinger Band has started narrowing to indicate decreasing volatility.
Image: ETH/USD daily
Looking at IntoTheBlock’s IOMAP, the Ethereum price has immediate resistance at $2,250. Previously, at this level, over 600,000 addresses had purchased almost 10.5 million ETH tokens.
Ethereum Price ‘In Danger’ After Shock China FUD?
Bitcoin and other cryptocurrency prices have corrected in recent weeks as a brutal crypto crackdown in China worsens. BTC crashed in May, losing 50% of its value, and has remained under pressure since. Meanwhile, Ether has fallen by more than half, with the price struggling to hold above $2,000 per Ether token.
Now, after reports suggesting at least some of the decommissioned Chinese mining capacity won't return, analysts have warned crypto prices are "in danger." Adam James, the senior editor at OKEx, wrote in his latest analysis:
"[China bitcoin and Ethereum miners dumping CPUs] doesn't come as a surprise given the fact that China seriously cracked down on bitcoin mining in the country, but the development may be interpreted as fundamentally bearish. Nonetheless, market sentiment has decreased significantly [over the last few days]."
Meanwhile, reports have emerged on social media that China has begun blocking access to major cryptocurrency exchanges. Many users reported that Huobi and Binance briefly required a location-masking VPN to access.
Binance, the world's biggest bitcoin and crypto exchange by volume, has been battling a global regulatory clampdown in recent weeks, with the US and countries throughout Europe ramping up their scrutiny of the platform.
China's crackdown on crypto mining forced those using high-powered computers to secure the Bitcoin network and validate transactions out of the country. The expulsion of crypto miners from China sent Bitcoin's hash rate to a 13-month low over the last two weeks. The Ethereum network was also hit by China's crypto mining ban, seeing its network hash rate drop some 20% since May as miners powered down.
Ethereum Price Is Expected To Reach These Levels
The Ethereum price needs to take down the $2,250 resistance barrier to reach the $2,500 psychological level.