Reason to trust
How Our News is Made
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Ad discliamer
Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.
Ethereum is down more than 5% as it broke the $240 support against the US Dollar. ETH price found support near $220 and it is currently correcting higher towards key hurdles.
- Ethereum failed to continue above $250 and it started a major decline.
- The price dived below $240 and it even spiked below the $230 support zone.
- There was a break below a major bullish trend line with support near $240 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could resume its decline if it fails to recover above the $240 pivot level.
Ethereum Price Turns Red
This week, Ethereum price followed a bullish path above the $220 pivot level. ETH price broke many key hurdles near the $240 and $250 levels. It even spiked above $250 resistance, but struggled to continue higher.
A high is formed near $253 and the price started a strong decline, following bitcoin’s sharp slide below $10,000. Ether price broke many key supports near the $240 level to move into a short term bearish zone.
Besides, there was a break below a major bullish trend line with support near $240 on the hourly chart of ETH/USD. The pair spiked below the $230 support and the 100 hourly simple moving average.
It tested the $220 support zone and a low is formed near $218. Ethereum is currently recovering nicely above the $230 level. It surpassed the 50% Fib retracement level of the recent drop from the $253 high to $218 low.
However, there is a major hurdle forming near the $240 level. It coincides with the 61.8% Fib retracement level of the recent drop from the $253 high to $218 low. A successful break above the $240 resistance is needed for a fresh increase. The main resistance on the upside is still near the $250 and $255 levels.
Uptrend Support for ETH
The first major support for Ethereum is near the $230 level. The main uptrend support is near the $220 level, which acted as a strong resistance in the past few days.
If the price fails to stay above the $220 support, there is a risk of a larger decline towards the $205 and $200 support levels in the near term.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is still well below the 50 level, with a negative bias.
Major Support Level – $230
Major Resistance Level – $240
Take advantage of the trading opportunities with Plus500
Risk disclaimer: 76.4% of retail CFD accounts lose money.
