Analysis

Ethereum Could Dive Below $225 Unless It Surges Past $235

Ethereum is currently correcting losses from the $ 228 low against the US Dollar. ETH must climb above the $ 235 resistance to start a fresh increase in the near term.

  • Ethereum is facing a couple of important hurdles near $ 235 and the 100 hourly simple moving average.
  • The current price action suggests high chances of more losses below $ 230.
  • There is a short-term declining channel forming with support near $ 230 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could decline heavily below $ 225 unless it surges past the $ 235 resistance zone.

Ethereum Price Might Resume Decline

After a strong decline below $ 235, Ethereum found support near the $ 228 level against the US Dollar. ETH price started an upside correction above the $ 230 level, but it is well below the 100 hourly simple moving average.

There was a break above the $ 232 level, plus the 23.6% Fib retracement level of the downward move from the $ 250 high to $ 228 low. However, the price is struggling to clear the $ 235 resistance (a multi-touch zone).

Ethereum Price

Ethereum price testing $ 230. Source: TradingView.com

The 100 hourly SMA is also near the $ 235 level to act as a resistance. It seems like there is a short-term declining channel forming with support near $ 230 on the hourly chart of ETH/USD. If the pair fails to stay above the channel support at $ 230, it could resume its decline.

The next support is near the $ 228 level, below which ether price might test the $ 225 support. Any further losses may perhaps spark a sharp decline below the $ 220 level in the near term.

Here Are Chances of Upside Break in ETH

The first major hurdle for Ethereum is near the $ 235 level. If there is an upside break above $ 235, the price could test the 50% Fib retracement level of the downward move from the $ 250 high to $ 228 low at $ 238.

If the bulls gain traction above the $ 235 and $ 238 resistance levels, ether might continue to rise. The next resistance is at $ 240, above which the price is likely to retest the $ 250 barrier.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is moving back into the bearish zone.

Hourly RSIThe RSI for ETH/USD is now well below the 40 level, with a bearish angle.

Major Support Level – $ 225

Major Resistance Level – $ 235

Take advantage of the trading opportunities with Plus500

Risk disclaimer: 76.4% of retail CFD accounts lose money.

Let’s block ads! (Why?)

Analysis – NewsBTC

Leave a Reply

Your email address will not be published. Required fields are marked *