Ethereum Price Analysis: ETH/USD Flirts With $500 Amid Massive Cryptocurrency Sell-Off

  • ETH/USD is on the verge of a massive crash, recovery is limited.
  • Thailand legalized Ethereum and 6 more coins.
  • Traders who shorted ETH on Bitmex reported huge profits.

ETH/USD touched $502 on Sunday before new buyers came in and helped the coin to recover towards $523. Ehereum shed over $6B of its market value in a single day amid growing trading volumes. The digital coin No. 2 followed the broader pattern of cryptocurrency market, that entered a bearish phase after a period of consolidation.

The nasty decline took ETH down over $100 in several hours as fundamental triggers were intensified by technical breakouts below critical support levels. From the short-term perspective, ETH/USD recovery is capped at  $530 level. Once it is broken, the coin will get a chance to regain $542, which is 50-SMA (30-min chart) and $567 (100-SMA). Ultimate resistance comes at $600, it is strengthened by 100-DMA. On the downside, ETH have to stay above $500, otherwise a more extended sell-off with the aim at this year lows ($364)) cannot be completely ruled out.

Meanwhile, Thailand’s SEC legalized seven popular digital currencies, including Bitcoin, Ethereum, and Ripple. The citizens are allowed to process transactions with the legalized coins while preparing and holding ICOs. Earlier, Thailand introduced double taxation for digital coins.

ETH/USD, 30-min chart