- ETH/USD has recovered from the recent lows, still below $130.00
- A sustainable move above $130.00 will improve the technical picture.
Ethereum jumped to $130.98 on Sunday, gaining over 2% of its value in a matter of hours. By the time of writing, the second-largest cryptocurrency exchange retreated to $128.70 and entered a consolidation phase.
While the reasons for a sudden increase remain unknown, experts tend to believe that low liquidity market conditions take their toll. From the technical point of view, a sustainable move above $130.00 will help to create additional bearish momentum and pave the way to an extended recovery towards $134.85 (December 18 high that stopped the previous recovery attempt). Once it is out of the way, the upside is likely to gain traction with the next focus on $140.00. This psychological barrier is reinforced by the middle line of the daily Bollinger Band. Also, it served as a support level in mid-December, before it was broken during the previous week.
On the downside, a sustainable move below $127.70 ( SMA50 (Simple Moving Average) 1-hour) will worsen the short-term technical picture and bring $126.00 back into focus ( the lower line of the daily Bollinger Band) Once $126.0 is cleared, the sell-off may be extended towards $120.00.