A Good Sign for Cryptos, as the 50 SMA Tries to Provide Support for Ethereum
Ethereum will continue the bullish momentum if the 50 SMA holds as support
Cryptocurrencies are trying to make up their mind this week, after the extreme volatility we saw in May. The first two weeks were really bullish for Ethereum, as it kept pushing up, all the way to $4,380, while Bitcoin and other cryptos were trading sideways.
But the crash came in the second half of the month and Ethereum slipped down to $1,740. ETHEREUM made a second run to the downside, while Bitcoin kept the lows at $30,000. Last week we saw a decent attempt at reversing the decline, and at some point ETH/USD climbed to $2,900.
But there was no follow-through, and eventually the price reversed back down, falling below the moving averages again. However, the price didn’t fall below the previous lows, which was a good sign, signalling that the big crash was finally over.
Ethereum reversed up and moved above the 50 SMA (yellow). Today we are seeing a slight pullback, but the 50 SMA (yellow) is acting as support, and if it holds, it will be another bullish signal. We are already long on ETH/USD, so we are hoping that the 50 SMA holds and Ethereum turns bullish again.
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