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Ethereum is down another 10% and it broke the main $230 support area against the US Dollar. ETH price is now approaching the key $205 and $200 support levels.
- Ethereum is down more than 25% in the past two days against the US Dollar.
- The price traded close to the $205 support area and it is currently consolidating losses.
- There is a key bearish trend line forming with resistance near $222 on the hourly chart of ETH/USD (data feed via Kraken).
- Bitcoin price is under a lot of pressure and it traded close to the $8,500 support area.
Ethereum Price Nosedives
Yesterday, we saw a strong 10% decline in Ethereum after it broke the $250 support against the US Dollar. Later, the bears gained momentum and ETH price even dived below the main $230 support area.
Moreover, there was a break below the $220 level and the price settled well below the 100 hourly simple moving average. The decline was such that the price traded close to the $205 support area.
A new weekly low is formed near $208 and the price is currently consolidating losses. An initial resistance on the upside is near the $222 level. Besides, the 50% Fib retracement level of the recent slide from the $241 high to $208 low is also near $224.
More importantly, there is a key bearish trend line forming with resistance near $222 on the hourly chart of ETH/USD. Therefore, Ethereum is likely to face a lot of hurdles on the upside near $222 and $224.
The main resistance is now near the $230 area, plus the 61.8% Fib retracement level of the recent slide from the $241 high to $208 low. A successful close above the $230 area is needed to start a strong recovery in the near term.
In the mentioned case, the price could recover towards the $250 resistance level and the 100 hourly simple moving average.
$200 As Key Support
On the downside, there are many important supports near the $205 and $200 levels. Ethereum bulls are likely to protect more losses below the $200 handle in the coming sessions.
If they fails to protect the $200 handle, it could initiate another slide and a medium term downtrend. The next major support is near the $178 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is showing a lot of negative signs in the bearish zone.
Hourly RSI – The RSI for ETH/USD is still well below the 40 level, with a bearish angle.
Major Support Level – $205
Major Resistance Level – $222
