• 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

ETH/USD price chart
ETH/USD price chart by Tradingview

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




Source: Coin Gape