Ethereum Close Below $200 Would Make Case for Larger Decline

Ethereum is struggling to break the $205 and $210 resistance levels against the US Dollar. ETH price is currently declining and it remains at a risk of a larger decline below $200.

  • Ethereum is facing a strong resistance near the $204 and $205 levels.
  • The price might continue towards the $192 support if it fails to stay above $200.
  • There is a key contracting triangle forming with resistance near $204 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair must climb above $205 and $210 to decrease chances of a larger decline in the near term.

Ethereum Price Could Extend Its Decline

Ethereum price found support near the $198 level after a sharp decline from the $210 resistance. ETH price started a short-term upside correction from $198 and managed to settle above $200.

There was a break above the 23.6% Fib retracement level of the downward move from the $210 high to $198 low. However, ether price seems to be facing a strong resistance near the $205 level and the 100 hourly simple moving average.

There is also a key contracting triangle forming with resistance near $204 on the hourly chart of ETH/USD. The triangle resistance is close to the 50% Fib retracement level of the downward move from the $210 high to $198 low.

Ethereum Price

Ethereum Price

A successful break above the triangle resistance and a follow up move above $205 is needed for a sustained upward move. The main resistance is now near the $210 level.

If the price climbs above the $210 resistance, it could decrease bearish pressure and increase chances of a decent rise towards the $220 and $225 levels in the near term.

Bearish Break

If Ethereum fails to recover above the $205 and $210 resistance levels, there might be a fresh decrease. An initial support is near the triangle lower trend line at $202.

The first key support is near the $200 level, below which the price is likely to continue lower towards $198 and $195. The main uptrend support is near the $192 level. If the bears push the price below the $192 support, it could spark a sharp decline towards the $180 level.

Technical Indicators

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

Hourly RSIThe RSI for ETH/USD is now declining and it is now well below the 50 level.

Major Support Level – $200

Major Resistance Level – $205

Take advantage of the trading opportunities with Plus500

Risk disclaimer: 76.4% of retail CFD accounts lose money.

Let’s block ads! (Why?)

Source: Newsbtc

loading...