Ethereum Just Broke $220 And It Remains At Risk of Diving To $200

Aayush Jindal

1 year ago

2 mins read

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Ethereum price started a downside correction from the $230 swing high against the US Dollar. ETH is currently declining and it remains at a risk of more losses below $215 and $2152.

Ethereum declined below the $225 and $220 support levels against the US Dollar.
The previous support at $225 is now acting as a major resistance for the bulls.
There is a key contracting triangle forming with support near $218 on the hourly chart of ETH/USD (data feed via Kraken).
Bitcoin price is also sliding and it recently traded below the $9,800 support area.

Ethereum Price Could Correct Further

After trading to a new 2020 high at $230, Ethereum started a downside correction (as mentioned in yesterday’s post) against the US Dollar. ETH price declined below the $225 and $222 support levels.

Moreover, there was a break below the $220 support and 100 hourly simple moving average. A swing low is formed near $217 and the price is currently consolidating in a range.

There was a break above the 23.6% Fib retracement level of the recent drop from the $230 high to $217 low. However, the price seems to be facing hurdles near the $224 and $225 levels.

On the downside, there is a decent support forming near the $218 area. Besides, there is a key contracting triangle forming with support near $218 on the hourly chart of ETH/USD. If Ethereum fails to stay above the $218 support area, there is a risk of a larger downside correction.

The next key support is seen near the $212 level. Any further losses may perhaps lead the price towards the $205 and $202 support levels. The next major support is near the $200 handle.

Chances of Upside Break

On the upside, the previous support at $225 is now acting as a major resistance for Ethereum bulls. If they succeed in gaining strength above the $225 resistance area and the triangle barrier, there could be a fresh increase.

A clear break above the $225 resistance level could open the doors for a break above the $230 resistance area. In the mentioned case, the price is likely to hit the $240 and $250 levels in the near term.

Overall, the price remains at a risk of more downsides below $218 and $215, but it is likely to find a strong support above $200 and $202.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bearish zone.

Hourly RSI – The RSI for ETH/USD is currently declining and it is now below the 50 level.

Major Support Level – $218

Major Resistance Level – $225

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

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