Ethereum Showing Early Signs of Strong Decline, But $230 Is The Key

Aayush Jindal

Last Updated: June 11, 2024 1:09 pm

2 mins read

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Ethereum is retreating lower from the $245 resistance against the US Dollar. ETH is now showing bearish signs below $235, but the $230 support holds the key in the near term.

Ethereum is currently facing an increase in selling pressure below $240 and $235.
The price tested the $230 support level and it is currently correcting higher.
There is a crucial bearish trend line forming with resistance near $235 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could continue to move down if it fails to recover above $235 and $238.

Ethereum Price Turns Red

In the past few sessions, Ethereum followed a bearish path from the $245 resistance against the US Dollar. ETH price broke the main $235 support level and the 100 hourly simple moving average to move into a bearish zone.

The decline was such that the price tested the $230 support level. Ether is currently correcting higher and trading above the $232 level. It surpassed the 23.6% Fib retracement level of the recent decline from the $239 swing high to $230 low.

On the upside, the price is facing a strong resistance near the $235 level. There is also a crucial bearish trend line forming with resistance near $235 on the hourly chart of ETH/USD.

Ethereum price trades below $235. Source: TradingView.com

The trend line is close to the 50% % Fib retracement level of the recent decline from the $239 swing high to $230 low. The next key resistance is near the $236 level and the 100 hourly SMA (the recent breakdown zone).

If ether climbs above the $235 and $236 resistance levels, it could start a decent recovery wave. The next hurdle could be $240, but the main barrier for the bulls is still near the $245 level.

More Losses in ETH?

On the downside, the $230 support holds the key in the coming sessions. If there is a successful break and close below the $230 support, it might confirm a bearish break.

In the stated case, the bears are likely to take control and they might aim a test of the $220 pivot level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly moving in the bullish zone.

Hourly RSI – The RSI for ETH/USD is currently rising towards the 50 level.

Major Support Level – $230

Major Resistance Level – $236

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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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