Analysis

Ethereum Could Narrowly Avoid a Major Downtrend if it Regains $240

Ethereum failed to surpass the $ 250 resistance and declined sharply against the US Dollar. ETH price could continue to move down as long as it is below $ 240 and the 100 hourly simple moving average.

  • Ethereum started a major decline after it failed to clear the main $ 1250 resistance zone.
  • The price declined sharply below the key $ 240 support and the 100 hourly simple moving average.
  • There was a break below a crucial bullish trend line with support at $ 244 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair traded as low as $ 225 and it is currently correcting higher above $ 230.

Ethereum Price Correcting Losses

Yesterday, we saw many rejections for Ethereum price near the $ 250 resistance area. ETH started a strong increase below the $ 245 and $ 240 support levels.

The price even settled below the $ 240 support and the 100 hourly simple moving average. Moreover, there was a break below a crucial bullish trend line with support at $ 244 on the hourly chart of ETH/USD.

Ethereum Price
Ethereum Price

It opened the doors for more losses below the $ 230 level and the price traded to a new weekly low at $ 225. Ether is currently correcting higher and trading above the $ 230 level.

There was a break above the 23.6% Fib retracement level of the recent decline from the $ 250 swing high to $ 225 low. The price is now approaching the $ 235 resistance, which is likely to act as a hurdle.

The main resistance on the upside is forming near the $ 240 level or the 100 hourly SMA. An intermediate resistance is near the $ 238 level or the 50% Fib retracement level of the recent decline from the $ 250 swing high to $ 225 low. To move into a positive zone, the price must settle above the $ 235 and $ 240 resistance levels.

More Losses in ETH?

Once the current wave is complete in Ethereum near $ 235 or $ 240, it is likely to resume its decline in the near term. An initial support is seen near the $ 225 level.

The first major support is near the $ 220 level, below which ether price is likely to accelerate lower towards the $ 205 and $ 200 support levels in the near term.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is slowly gaining pace in the bullish zone.

Hourly RSIThe RSI for ETH/USD is currently correcting higher towards the 50 level.

Major Support Level – $ 225

Major Resistance Level – $ 240

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Analysis – NewsBTC

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