Ethereum Recovery Could Be Short Lived Near This Key Resistance

Aayush Jindal

1 year ago

2 mins read

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Ethereum is extended its decline below the $200 support area against the US Dollar. ETH price traded as low as $188 and it is currently correcting higher towards $205 and $208.

Ethereum is currently recovering losses from the $188 monthly low against the US Dollar.
The price is likely to face a lot of hurdles on the upside near $208 and $212.
There was a break above a major declining channel with resistance near $199 on the hourly chart of ETH/USD (data feed via Kraken).
Bitcoin price is now trading well below the $8,000 level, with a bearish angle

Ethereum Price Facing Hurdles

Yesterday, we saw a massive 15% decline in Ethereum below the $220 and $215 support levels against the US Dollar. ETH price even spiked below the $200 handle and settled well below the 100 hourly simple moving average.

A new monthly low is formed near the $188 level and the price is currently correcting higher. There was a break above the $195 level, plus the 23.6% Fib retracement level of the downward move from the $233 high to $188 low.

Moreover, there was a break above a major declining channel with resistance near $199 on the hourly chart of ETH/USD. Ethereum is now trading near the $200 level and facing a lot of hurdles on the upside.

An initial resistance is near the $205 level. The first major resistance is near the $208 and $212 levels (the recent breakdown zone). The 50% Fib retracement level of the downward move from the $233 high to $188 low is also near the $212 level to act as a major hurdle.

Any further gains could lead the price towards the $218 resistance level and the 100 hourly simple moving average, where the bears are likely to take a stand. A successful break and close above $220 is needed to start a fresh increase in the near term.

More Losses?

If Ethereum fails to recover above the $208 and $212 resistance levels, it could start another decline. An initial support is near the $195 level, below which there is a risk of more losses towards $185.

A downside break below the $185 level may perhaps be seen as a major bearish signal and it could lead the price towards the $150 zone in the coming days.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is about to move back into the bearish zone.

Hourly RSI – The RSI for ETH/USD is currently struggling to move above the 50 level.

Major Support Level – $195

Major Resistance Level – $212

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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