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.
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 MACD – The MACD for ETH/USD is slowly gaining pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently correcting higher towards the 50 level.
Major Support Level – $225
Major Resistance Level – $240
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