Ethereum Just Reversed and $240 Is Imminent, Here’s Why

Aayush Jindal

1 year ago

2 mins read

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Ethereum failed again to surpass the $288 resistance area against the US Dollar. As a result, ETH price declined sharply below $270 and it might soon revisit the $240 support.

Ethereum failed on a couple of occasions to surpass $286 and $288 against the US Dollar.
The price is down more than 5% and it broke the key $270 support level.
There was a break below a key bullish trend line with support near $280 on the hourly chart of ETH/USD (data feed via Kraken).
Bitcoin price is also down 5% and it tumbled below the $9,800 support area.

Ethereum Price Could Revisit $240

Recently, we saw a decent upward move in Ethereum above the $270 and $275 levels against the US Dollar. However, ETH price failed to on a couple of occasions to surpass $286 and $288.

As a result, there was a sharp decline below the $280 support level and the 100 hourly simple moving average. It seems like there was a harsh rejection near $286 and the price formed a short term double top pattern.

There was a clear break below the 50% Fib retracement level of the upward move from the $243 low to $286 high. Moreover, there was a break below a key bullish trend line with support near $280 on the hourly chart of ETH/USD.

It opened the doors for more losses in Ethereum below the $270 support area. The price even spiked below the 61.8% Fib retracement level of the upward move from the $243 low to $286 high.

Therefore, there are chances of more losses in the near term below $255 and $250. The next main support for the bulls is near the $240 area. Any further losses may perhaps accelerate the decline towards the $230 support area in the near term.

Upsides Capped

If Ethereum price starts a fresh increase above the $265 resistance, it could recover towards $270. Though, there is a major resistance forming near the $270 area and the 100 hourly simple moving average.

A successful close above the $270 resistance and the 100 hourly simple moving average is needed for a fresh rally. The main hurdle for the bulls is still near the $286 and $288 levels, above which the next aim could be $300.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is currently gaining strength in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now well below the 50 level, with a bearish angle.

Major Support Level – $250

Major Resistance Level – $270

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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