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.

Ethereum Price

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