Ethereum Tumbles 8%: Here’s Key Support Turned Resistance For The Bulls

Aayush Jindal

1 year ago

2 mins read

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Ethereum started a sharp decline below the $265 and $260 support levels against the US Dollar. ETH even tumbled below $250 and it is currently correcting losses.

Ethereum is down more than 8% and it even spiked below the $250 support against the US Dollar.
The price traded as low as $236 and it is currently recovering losses.
There is a major bearish trend line forming with resistance near $264 on the hourly chart of ETH/USD (data feed via Kraken).
Bitcoin price is also under pressure and it is trading below the $10,000 level.

Ethereum Price Facing Hurdles

After starting a downside correction, Ethereum struggled to stay above the key $265 support against the US Dollar. As a result, ETH price declined sharply below the $250 support and the 100 hourly simple moving average.

The bears gained traction and the price declined below the $242 support. A swing low is formed near $236 and the price is currently correcting losses. It broke the $242 and $245 levels.

Besides, there was a break above the 23.6% Fib retracement level of the recent dive from the $274 high to $236 low. Ethereum even recovered above the $255 level, but the price failed to continue above the $260 area.

It seems like the previous key support near $260 is acting as a strong hurdle for the bulls. More importantly, there is a major bearish trend line forming with resistance near $264 on the hourly chart of ETH/USD.

The 50% Fib retracement level of the recent dive from the $274 high to $236 low is also near the $260 area and acting as a hurdle for the bulls. Therefore, a clear break above the $260 level, 100 hourly simple moving average, and the trend line is needed for a fresh increase in the near term.

More Losses?

If the price fails to recover above $260 and the 100 hourly simple moving average, there are chances of more losses in the near term.

An initial support is near the $242 level. If there is a downside break below the $242 support, there is a risk of more losses below the $240 support area in the coming sessions. The next major support could be $235 and $232 levels.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly moving back into the bullish zone.

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

Major Support Level – $242

Major Resistance Level – $265

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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