Analysis

Ethereum Is Plunging and Its Vulnerable For A Drop To $200

Ethereum is declining and trading below the $ 225 support against the US Dollar. ETH price remains at a risk of more losses and it might revisit the $ 200 support.

  • ETH price is showing bearish signs and trading below the $ 225 support area against the US Dollar.
  • It tested the $ 215 support and settled well below the 100 simple moving average (4-hours).
  • There is a crucial bearish trend line forming with resistance near $ 225 on the 4-hours chart of ETH/USD (data feed via Kraken).
  • The pair must recover above the $ 225 support to avoid a push towards the $ 200 support area.

Ethereum Price Settles Below $ 225

This past week, Ethereum started a major downward move below the $ 235 support against the US Dollar. ETH price broke the $ 225 support level and settled well below the 100 simple moving average (4-hours).

It opened the doors for more losses and the price tested the $ 215 level. Ether is currently consolidating losses above the $ 215 level, but there are many bearish signs visible.

An initial resistance is near the $ 222 and $ 224 levels. The 23.6% Fib retracement level of the downward move from the $ 249 high to $ 215 low is also near the $ 224 level. More importantly, there is a crucial bearish trend line forming with resistance near $ 225 on the 4-hours chart of ETH/USD.

Ethereum Price

Ethereum price trades below $ 225. Source: TradingView.com

If ether price breaks the trend line resistance and $ 225, it could recover towards the next major resistance at $ 232 and the 100 simple moving average (4-hours). The 50% Fib retracement level of the downward move from the $ 249 high to $ 215 low is also near $ 232.

Therefore, the price is likely to struggle big time near the $ 225 and $ 232 resistance levels. The bulls need to gain momentum above $ 225 for a successful bullish push above the $ 232 barrier.

More Losses in ETH?

The first support for Ethereum is visible near the $ 215 level. If the bears manage to push the price below the $ 215 level, there could be a 3%-5% drop.

In the mentioned case, the price is likely to test the $ 205 and $ 200 support levels. Any further losses might open the doors for a push towards $ 185 support.

Technical Indicators

4 hours MACD – The MACD for ETH/USD is now gaining pace in the bearish zone.

4 hours RSI – The RSI for ETH/USD is currently well below the 40 level.

Major Support Level – $ 215

Major Resistance Level – $ 225

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Analysis – NewsBTC

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