Ethereum Price Loses Steam At $200: A Massive Selloff In The Offing as ETH Longs Surge On Bitfinex
- Ethereum retreats slightly from the intraday high at $201 to seek a high support.
- Applied technical indicators send positive signals but low volume hampers price action.
Ethereum price followed in Bitcoin’s footsteps stepping above $200. Bitcoin surged to highs close to $9,400 but Ethereum bullish momentum fizzled out at $201. The recovery is happening after several days of consolidation in a narrow range between $188 and $192. Ether had also recovered from the weekend and May low at $180. However, the path to $200 remained hampered by increased seller dominance.
At the time of writing, Ether is valued at $198. The minor retreat from $201 (intraday high) is to confirm a higher support after $200 failed to hold. ETH/USD is also battling resistance at 21-day Simple Moving Average (SMA). Bulls have their eyes on $220 but first they must be ready to deal with the resistance at the 61.8% Fibonacci level.
ETH/USD daily chart
From a technical point of view, the prevailing trend is in the bulls’ favor. The RSI is holding above the average (50) following a steady recovery from 44 (May low). Although the trend is bullish, low trading volume continues to limit the price action. Ethereum bulls must focus on breaking the resistance at $200 to enable them shift the focus to $220.
Ethereum 2.0 launch results in a spike in long positions
As the launch of ETH 2.0 draws nigh, Ether’s long positions are surging on Bitfinex. The growth can be traced from February 2020. However, at the moment short positions are gaining momentum after Vitalik Buterin refuted the news that the launch will take place in July. This has introduced pa risk factor and could lead to a violent selloff.
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