Do or Die For Ethereum Bulls: Here’s What Could Trigger A Sharp Decline

Ethereum is stuck in a range below the $242 and $245 resistance levels against the US Dollar. ETH may soon either rally above the $245 resistance or decline sharply below the $235 support.

  • Ethereum is currently consolidating in a range above the $235 support zone.
  • The price is facing a couple of important hurdles near $242 and $245.
  • There is a significant bearish trend line forming with resistance near $242 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could start a sharp decline if it breaks the main $235 support level.

Ethereum Price is Approaching Next Big Move

In the past few days, Ethereum made a few attempts to crack the $235 support zone against the US Dollar. However, ETH price remained stable above the $235 support, but it also failed to gain bullish momentum.

The last swing low was near $237 before the price corrected higher. It surpassed the $240 level and the 100 hourly simple moving average. There was a break above the 23.6% Fib retracement level of the latest drop from the $245 swing high to $236 low.

On the upside, the price is facing a strong resistance near the $242 level. Ether is also struggling to clear the 50% Fib retracement level of the latest drop from the $245 swing high to $236 low.

Ethereum

Ethereum (ETH) price trades below $240. Source: TradingView.com

There is also a significant bearish trend line forming with resistance near $242 on the hourly chart of ETH/USD. It seems like ether price is facing a couple of important hurdles near $242 and $245. A successful close above the $245 resistance is needed for a strong upward move.

The next major resistance is near the $250 barrier, above which the bulls are likely to aim a sustained upward move towards the $262 and $265 levels.

Chances of Bearish Break in ETH

On the downside, the $235 support holds the key. If there is a successful close below the $235 support, the bears are likely to take control in the coming sessions.

The next major support is near the $230 level, below which the bears are likely aim a test of the $220 pivot level.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is gaining momentum in the bearish zone.

Hourly RSIThe RSI for ETH/USD is currently well below the 50 level.

Major Support Level – $235

Major Resistance Level – $242

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Source: Newsbtc

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