Ethereum struggles with recovery to $600 following flash drop to $480

• Ethereum rebounds above $500 but struggles with the uptrend to the 50 SMA and $600, respectively.
• ETH/USD has to close the day above the 100 SMA and perhaps rise above the 50 SMA to sustain the uptrend.

The cryptocurrency market plummeted massively on Thursday. Bitcoin’s fall to $16,350 was attributed to investors cashing out from OKEx cryptocurrency exchange after withdrawal services resumed. Over $50 million in BTC is reported to have left the exchange, adding pressure to the selloff.

Ethereum flashed dropped after losing the support at the ascending parallel channel’s lower boundary. The bearish leg extended under the 50 Simple Moving Average on the 4-hour chart. The declines stretched under $500 as well as the 50 SMA. Intriguingly, support at $480 remained intact, helping the bulls to find balance ahead of reversal.

ETH/USD 4-hour chart

At the time of writing, the smart contract giant has recovered above $500 while eyeing the 50 SMA at $540. On the downside, the 100 SMA provides ETH with immediate support.

The Relative Strength Index seems to have validated the uptrend after bouncing the oversold area. Closing the day above the 50 SMA would hint at a progressing uptrend towards $600.

On the downside, it worth noting that the bullish outlook will be invalidated if Ethereum slides under the 100 SMA. If sell orders increase mainly due to panic from investors rushing to take profits, ETH could dive under $500.

The support at $480 is expected to come in handy. However, in the event, the headwinds intensify, ETH/USD is likely to fall to the 200 SMA in the 4-hour timeframe.

Ethereum intraday levels

Spot rate: $521

Relative change: -47

Percentage change: -8.4%

Trend: Bullish

Volatility: Low