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 (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 MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently well below the 50 level.
Major Support Level – $235
Major Resistance Level – $242
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via https://www.ohnocrypto.com
Aayush Jindal, Khareem Sudlow
