Ethereum Is Diving, But It’s Too Early to Say Bulls Have Given Up

Aayush Jindal

1 year ago

2 mins read

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Ethereum failed to continue above the $220 resistance and declined below $208 against the US Dollar. ETH price is currently testing $200 and remains at a risk of more losses.

Ethereum topped near the $220 level and started a fresh decline.
The price is down more than 5% and it is currently closing in towards the $200 support zone.
There is a key bearish trend line forming with resistance near $208 on the hourly chart of ETH/USD (data feed via Kraken).
The pair is likely to decline toward the $192 support before it might start a strong increase.

Ethereum Price is Extending Losses

After forming a support base above $202 and $200, Ethereum recovered above $210 against the US Dollar. ETH price traded above the $215 level and remained well above the 100 hourly simple moving average.

However, the bulls faced a strong resistance near the $220 level. The failed to push the price above $220, resulting in a fresh decline. There was a break below the $210 level and the 100 hourly simple moving average.

Ethereum is now trading near the key $202 and $200 support levels. An initial resistance on the upside is near the $207 level. It is close to the 23.6% Fib retracement level of the recent slide from the $220 high to $202 low.

There is also a key bearish trend line forming with resistance near $208 on the hourly chart of ETH/USD. The trend line coincides with the 50% Fib retracement level of the recent slide from the $220 high to $202 low.

The main resistance on the upside is now near $210 and the 100 hourly SMA. To move into a positive zone, the price must break the $208 and $210 resistance levels. The next key resistance is seen near the $220 level, above which Ether could rise towards the $230 level.

Main Uptrend Support

On the downside, there is a crucial support forming near the $202 and $200 levels. If Ethereum fails to stay above the key $200 support, it could slide towards the $192 support.

Any further losses below the $192 support might open the doors for a larger decline towards the $182 and $180 support levels in the next 2-3 days.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bearish zone.

Hourly RSI – The RSI for ETH/USD is currently well below the 40 level, with a bearish angle.

Major Support Level – $200

Major Resistance Level – $210

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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