Ethereum price joins the sharp correction in the cryptocurrencies market today, giving up over 4% as the pressure accelerates during the American trading session. Lumen is the worst performer today giving up over 8%, followed by EOS and Litecoin.
Bitcoin is 4.02% lower at 11,408 while Ripple is 1.95% lower at 0.2887. Traders are taking today some profits off the table from ETHUSD after the massive rally in cryptocurrencies, while they are doing the same in other assets such as the Nasdaq and gold.
Ethereum has run an impressive rally with gains over 200% since the March lows. Cryptocurrencies investors have high expectations on the upcoming ETH 2.0 upgrade, which will change the way Ethereum is distributed to the public. One of the main new features of the upgrade is that the new model would allow receiving passive income for the validation of Ethereum transactions. The latest upgrade will also boost the decentralized finance applications (DEFI) which mostly runs on Ethereum platform.
Ethereum Daily Technical Analysis
Ethereum price is 3.24% lower at $383.16 giving up almost all of the previous two days gains, as the consolidation phase continues after the recent strong rally. The number two cryptocurrency has formed a rectangle formation and needs a catalyst for the next trend. Traders can buy when the price reaches the support and sell when the price moves toward the resistance or the upper bound of the rectangle.
Outside the rectangle, first support stands at 361.71 the low from August 7. More bids would emerge at $342.62 the low from August 1 trading session. On the other side, immediate resistance is at $398.43 today’s top. More selling pressure awaits at $404, the upper bound of the rectangle. In case of a breakout, bulls would challenge the recent highs at $414.
Ethereum Daily Chart