Ethereum Is Plunging and Its Vulnerable For A Drop To $200
Ethereum is declining and trading below the $225 support against the US Dollar. ETH price remains at a risk of more losses and it might revisit the $200 support.
- ETH price is showing bearish signs and trading below the $225 support area against the US Dollar.
- It tested the $215 support and settled well below the 100 simple moving average (4-hours).
- There is a crucial bearish trend line forming with resistance near $225 on the 4-hours chart of ETH/USD (data feed via Kraken).
- The pair must recover above the $225 support to avoid a push towards the $200 support area.
Ethereum Price Settles Below $225
This past week, Ethereum started a major downward move below the $235 support against the US Dollar. ETH price broke the $225 support level and settled well below the 100 simple moving average (4-hours).
It opened the doors for more losses and the price tested the $215 level. Ether is currently consolidating losses above the $215 level, but there are many bearish signs visible.
An initial resistance is near the $222 and $224 levels. The 23.6% Fib retracement level of the downward move from the $249 high to $215 low is also near the $224 level. More importantly, there is a crucial bearish trend line forming with resistance near $225 on the 4-hours chart of ETH/USD.
Ethereum price trades below $225. Source: TradingView.com
If ether price breaks the trend line resistance and $225, it could recover towards the next major resistance at $232 and the 100 simple moving average (4-hours). The 50% Fib retracement level of the downward move from the $249 high to $215 low is also near $232.
Therefore, the price is likely to struggle big time near the $225 and $232 resistance levels. The bulls need to gain momentum above $225 for a successful bullish push above the $232 barrier.
More Losses in ETH?
The first support for Ethereum is visible near the $215 level. If the bears manage to push the price below the $215 level, there could be a 3%-5% drop.
In the mentioned case, the price is likely to test the $205 and $200 support levels. Any further losses might open the doors for a push towards $185 support.
Technical Indicators
4 hours MACD – The MACD for ETH/USD is now gaining pace in the bearish zone.
4 hours RSI – The RSI for ETH/USD is currently well below the 40 level.
Major Support Level – $215
Major Resistance Level – $225
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Aayush Jindal, Khareem Sudlow