Ethereum is trying to stabilize after yesterday’s sharp sell-off which drove the price almost 40 dollars lower. Fears of a second lockdown in many countries drove investors away from risky assets. All major stock indices around the globe experience heavy losses and investors run for cover in the safe-haven USD. Ethereum was one more victim of the stronger dollar yesterday along with commodities and crude oil.
All major cryptocurrencies were sold –off aggressively yesterday. Bitcoin lost almost $600 and found support at the 100-day moving average. Ripple dropped at 0.23 and breached below the 100-day moving average as bears took control of XRPUSD.
Yesterday the U.S. Office of the Comptroller of the Currency issued official guidance on stablecoins. The OCC stablecoins guidance confirms that U.S. banks can provide services to stablecoin issuers along with the services offered to crypto issuers. The banks providing that services need to comply with all the laws and regulations
Ethereum Price Analysis
Ethereum price hovers close to two-week lows but managed today to return above the 340 mark. The number two cryptocurrency breached below the 50-day moving average in early September and since then any attempt to return above met intense selling pressure. Ethereum keeps the impressive gains since the beginning of the year it is now 166% higher, while it is 180% higher since the March lows.
ETHUSD now faces the critical 100-day moving average support. A break below would attract more sellers targeting 298.33 the low from July 26. Next support would be met at 279,81 the low from July 25.
On the other hand, today’s top at 346.61 is a minor resistance. A break above might challenge 376.19 the high from yesterday’s trading session. As I have mentioned above the 50-day moving average has turned now into resistance at 390.89, and a break above would give bulls the upper hand. I have discussed that resistance in previous analysis: Ethereum Price Outperforms – Strong Resistance At $390.