- Ethereum exhibits characteristics of a fiat currency according to Morgan Creek’s Anthony Pompliano.
- Ethereum slides under $230 after failing to break $235 resistance; declines continue to loom ahead of a reversal towards $300.
Ethereum Is Similar to Fiat Currency
An intriguing comment by Morgan Creek’s Anthony Pompliano puts Ethereum back in the limelight, awakening the sleeping lions in the Ethereum community. Pompliano in his comment said that Ether has no much difference with fiat currency due to the characteristics they share.
The issue is that Ether is no different than fiat currency. Fiat currencies have (a) no fixed supply, (b) an inflationary supply schedule, and (c) monetary policy decisions that are decided by a small group of individuals.
Ethereum Price Technical Analysis
Ethereum is trading at $228 following a false breakout above $230 that hit a wall at $234.74 (on Coinbase exchange). A correction from the weekly high pushed Ether to an intraday low of $226.61 on Tuesday. The bulls continue to throw jabs at the bears while flexing their muscles towards $230.
ETH/USD daily chart
The daily chart clearly shows a bearish candle catching momentum. The Relative Strength Index (RSI) recovery has stalled at 50; upward movements could be an uphill task in the current and future sessions. The wide gap between the 50 SMA and the 100 SMA also emphasizes the influence the buyers have on the price at the time of writing.
On the downside, the Ethereum price is supported initially at $220. Continued correction downwards could test the critical support at $210. If push comes to shove, the zone at $200 is a possible buy zone where many investors could enter the market to buy low. Other key levels to watch include the ascending trendline, the 50-day SMA and the 100-day SMA.
Ethereum bulls need to rise above $230 resistance or risk plunging towards $210 major support. If gains are contained above $230, this will give the bulls more time to gather the strength to pull towards $300.
Ethereum Key Levels
Spot rate: $229.22
Relative change: -2.90
Percentage change: -1.25
Trend: Bearish
Volatility: Low
Ethereum slides under $230 after failing to break $235 resistance; declines continue to loom ahead of a reversal towards $300.
Disclaimer
The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
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