Ethereum Nosedives 10%, Here Are Important Supports The Bulls Must Watch

Aayush Jindal

1 year ago

2 mins read

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Ethereum is down close to 10% and it broke the key $255 support area against the US Dollar. ETH price might continue to slide, but the $230 and $225 levels are likely to provide support.

Ethereum is declining heavily and it recently broke the $255 and $250 support levels against the US Dollar.
The price is now trading near the $235 level, with key supports near the $230 area.
There was a break below a major descending channel with support at $253 on the hourly chart of ETH/USD (data feed via Kraken).
Bitcoin price is also sliding and it traded below the $9,250 support area.

Ethereum Price Turns Red

Yesterday, we saw a few bearish signs for Ethereum after it broke the $265 support against the US Dollar. As a result, there was a sharp decline in ETH price below the $255 support area and the 100 hourly simple moving average.

The decline was such that the price declined below the $250 and $248 support levels. Moreover, there was a break below a major descending channel with support at $253 on the hourly chart of ETH/USD.

It opened the doors for more losses below $245. Ethereum is down close to 10% and it traded close to the $235 level. A new weekly low is formed near $236 and the price is currently consolidating losses.

An initial resistance on the upside is near the $242 level. It coincides with the 23.6% Fib retracement level of the recent drop from the $264 high to $236 low. Above $242, there are a couple of important hurdles near the $248 and $250 levels.

The main resistance is now near the $250 level since it is close to the 50% Fib retracement level of the recent drop from the $264 high to $236 low. Therefore, the price must climb above the $248 and $250 resistance levels to start a fresh increase in the near term.

More Losses?

On the downside, an initial support is seen near the $235 area. The first major support is near the $230 area, where Ethereum bulls are likely to emerge.

If there are more losses below the $230 support, the next target for the bears could be $220 in the coming sessions.

Technical Indicators

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

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

Major Support Level – $230

Major Resistance Level – $250

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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