Ethereum is following a bearish pattern and it recently failed to surpass $240 against the US Dollar. ETH price is likely to continue lower and it may soon retest the $200 support zone.
Ethereum Price Gaining Bearish Momentum
In the weekly analysis, we discussed the importance of the $240 resistance for Ethereum price against the US Dollar. ETH made a few attempts to clear the $240 resistance, but it failed to continue higher.
As a result, there was a sharp decline below the $230 support and the price settled below the 100 hourly simple moving average. The decline was such that the price broke the $225 swing low and traded to a new weekly low at $218.
It is currently consolidating losses near the $220 level. An initial resistance is near the $224 level. It is close to the 23.6% Fib retracement level of the recent drop from the $240 swing high to $218 low.
The first key resistance for ether price is near the $230 level. There is also a key bearish trend line forming with resistance near $230 on the hourly chart of ETH/USD. The trend line is close to the 50% Fib retracement level of the recent drop from the $240 swing high to $218 low.
On the downside, the recent low near the $218 level is a short-term support. A clear break below the $218 level might open the doors for more losses below the $215 level. The next major support is seen near the $205 and $200 levels.
Chances of Recovery in ETH?
Ethereum is clearly facing many hurdles near the $228 and $230 level. The first major resistance is near the $235 level and the 100 hourly SMA.
The main resistance is still near the $240 level, above which the price might start a decent upward move in the near term.
Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now well below the 30 level, with oversold conditions.
Major Support Level – $215
Major Resistance Level – $230
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