Ethereum has stabilized from the lows
Following the steep declines in price of Ethereum in early Ferbruary which sent prices to slip to below 700 levels, Ethereum has managed to stabilize from the lows. The brief attempt to rise towards the 950 levels saw prices briefly slipping again.
Ethereum is currently consolidating
While there is a temporary lull in the cryptocurrency markets, the prices for Ethereum are expected to remain in a consolidatory mode for a while longer. Meanwhile, after the initial chorus of calling crypto currencies unacceptable and risky for investors, the market chatter has calmed down a bit. However, most recently, officials from the European Union were the next to join the bandwagon in talking down the cryptocurrency.
According to some news reports officials in the European Union were seen commenting that they could regulate cryptocurrency trading. However, unlike most of their counterparts, the fact that EU officials want to regulate cryptocurrency trading is a welcome change compared to talking negative about cryptocurrencies in general.
Valdis Dombrovskis, the vice-president of the European Commission said, "This is a global phenomenon and it’s important there is an international follow-up at the global level." He however said that they do not exclude the possibility to move ahead to regulate cryptocurrencies at the EU level unless they clearly see some risks emerging.
From a technical standpoint, the lack of any clear fundamentals will likely put Ethereum to trade on the technical levels. Following the breakout from the falling median line, Ethereum prices were seen moving back to the resistance level formed near 981 - 912 region. We expect to see another minor retest of this level.
Following a reversal at this level, Ethereum prices are expected to fall towards the first support level seen at 628.19.
Therefore, the ETHUSD trading is biased to the downside, as we expect Ethereum prices to post a decline following a brief retest of the resistance level once again. A move above the 1100 level could however invalidate this downside bias and push Ethereum prices to the upside.