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

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

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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Via https://www.newsbtc.com/2020/07/17/ethereum-showing-early-signs-of-strong-decline/?utm_source=rss&utm_medium=rss&utm_campaign=ethereum-showing-early-signs-of-strong-decline


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