Ethereum Is Plunging and Its Vulnerable For A Drop To $200

Aayush Jindal

1 year ago

2 mins read

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Ethereum is declining and trading below the $225 support against the US Dollar. ETH price remains at a risk of more losses and it might revisit the $200 support.

ETH price is showing bearish signs and trading below the $225 support area against the US Dollar.
It tested the $215 support and settled well below the 100 simple moving average (4-hours).
There is a crucial bearish trend line forming with resistance near $225 on the 4-hours chart of ETH/USD (data feed via Kraken).
The pair must recover above the $225 support to avoid a push towards the $200 support area.

Ethereum Price Settles Below $225

This past week, Ethereum started a major downward move below the $235 support against the US Dollar. ETH price broke the $225 support level and settled well below the 100 simple moving average (4-hours).

It opened the doors for more losses and the price tested the $215 level. Ether is currently consolidating losses above the $215 level, but there are many bearish signs visible.

An initial resistance is near the $222 and $224 levels. The 23.6% Fib retracement level of the downward move from the $249 high to $215 low is also near the $224 level. More importantly, there is a crucial bearish trend line forming with resistance near $225 on the 4-hours chart of ETH/USD.

Ethereum price trades below $225. Source: TradingView.com

If ether price breaks the trend line resistance and $225, it could recover towards the next major resistance at $232 and the 100 simple moving average (4-hours). The 50% Fib retracement level of the downward move from the $249 high to $215 low is also near $232.

Therefore, the price is likely to struggle big time near the $225 and $232 resistance levels. The bulls need to gain momentum above $225 for a successful bullish push above the $232 barrier.

More Losses in ETH?

The first support for Ethereum is visible near the $215 level. If the bears manage to push the price below the $215 level, there could be a 3%-5% drop.

In the mentioned case, the price is likely to test the $205 and $200 support levels. Any further losses might open the doors for a push towards $185 support.

Technical Indicators

4 hours MACD – The MACD for ETH/USD is now gaining pace in the bearish zone.

4 hours RSI – The RSI for ETH/USD is currently well below the 40 level.

Major Support Level – $215

Major Resistance Level – $225

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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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