TL;DR
- ETH has risen 8.5% in the past 24 hours and is currently trading above $4,100.
- The coin could extend its recovery if the daily candlestick closes above $4,232.
ETH tops $4,100 after Friday’s flash crash
Ether, the second-largest cryptocurrency by market capitalization, has rebounded impressively after Friday’s crash. Due to the market crash, ETH lost more than 30% of its value in less than an hour, briefly reaching the $3,500 region.
However, the coin has increased in value by 8.5% in the past 24 hours and is currently trading at $4,165 per coin. The cause of the collapse was President Trump’s announcement of new tariffs on imports from China.
Commenting on recent market events, Nick Foster, founder of leading on-chain options platform Derive.xyz, said that on the day of the crash, options skew dropped sharply on both BTC and ETH, reflecting a plunge into downside protection. Skew measures the relative demand for calls and puts. A higher negative value indicates higher demand for the put.
“Volatility rose sharply across the BTC and ETH markets. Normally, a sharp decline would only push up short-term volatility (1-7 DTE) as traders expect short-term turmoil to subside. However, Friday’s decline increased volatility across all expirations, indicating expectations for continued turbulence and a difficult road ahead,” Forster added.
ETH could rise further if the daily candlestick closes above the $4,232 resistance level
The ETH/USD 4-hour chart is bearish and inefficient thanks to Friday’s price action. ETH failed to find support near the $4,488 daily level last week and plunged more than 20% on Friday. However, it recovered slightly and closed above $4,150. At the time of writing, ETH is hovering around $4,160.
Similar to Bitcoin, Ethereum’s MACD still supports a bearish view, but that could change quickly if buying pressure builds. The RSI reading of 54 is above the neutral reading of 50, suggesting that buyers are regaining control of the market.
If ETH continues its recovery and closes above the daily resistance at $4,232, the coin could rally towards the next major resistance at $4,488. However, if the resistance at $4,232 is not overcome, ETH could extend its decline towards the 61.8% Fibonacci retracement level at $3,593 in the coming days.
