Unless the Ethereum cryptocurrency moves up its price action above $235, the ETH price could drop below $225 and post new losses. This is the reality that many analysts are discussing now, all while Ethereum faces a couple of important hurdles near the $235 level and the 100 hourly simple moving average.
After a strong decline below $235, the ETH price could drop and is at risk. It found support near the $228 level against the US dollar and started an upside correction above the $230 level, but it is now well below the 100 hourly simple moving average.
We could notice a break above the $232 level, plus the 23.6% Fib retracement level of the downward move from a $250 high to a $228 low. Still, the Ethereum news showed that the price is struggling to get above the $235 resistance which is a multi touch zone.
The 100 hourly SMA is also positioned near the $235 level which acts as a resistance. A common fact is that the ETH price could drop if it does not attempt to secure a position above this level.
It seems like there is some short-term declining channel that is forming with support near $230 on the hourly chart of the ETH/USD pair. If the pair fails to stay above the channel support $230, it could resume its decline.
Now, the next support is positioned near the $228 level, below which the ETH price could drop and test the $225 support. Any further losses may also spark a sharp decline below the $220 level in the near term.
As analysts point out, the first major hurdle for ETH in the cryptonews is the $235 level. If we see an upside break above $235, the price could test the 50% Fib retracement level of the downward move from a $250 high to a $228 low at $238.
In a positive scenario, the Ethereum ETH price could benefit if the bulls gain traction above $235 and $238 resistance levels, which is how ETH might continue to rise and visit the resistance level at $240.
The technical indicators for Ethereum now are as following:
- Hourly MACD – The MACD for ETH/USD is now going back to the bearish zone.
- Hourly RSI – The RSI for ETH/USD is currently bearish and well below the 40 level
- Major Support Level – $225
- Major Resistance Level – $235
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