Ethereum failed to continue above the $210 resistance and declined recently against the US Dollar. ETH price must stay above $195 and $192 to avoid a major downtrend.
- Ethereum is still struggling to break the $210 and $215 resistance levels.
- The price might start a decent recovery wave as long as it is above the $192 support zone.
- There is a major bearish trend line forming with resistance near $205 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could avoid a significant decline if it breaks the $210 resistance zone.
Ethereum Price is Facing Hurdles
After two rejections near the $210 resistance, Ethereum price started a fresh decline against the US Dollar. Bitcoin price also declined below the $9,000 support, sparking a bearish wave in ETH below the $202 level.
The price broke the $200 support and tested the $198 level. A low is formed near $198 and the price is currently correcting higher. There was a break above the $200 and $202 levels. Ether also climbed above the 23.6% Fib retracement level of the recent decline from the $210 high to $198 low.
On the upside, there is a strong resistance forming near the $205 level and the 100 hourly simple moving average. There is also a major bearish trend line forming with resistance near $205 on the hourly chart of ETH/USD.
The trend line is close to the 50% Fib retracement level of the recent decline from the $210 high to $198 low. If there is an upside break above the $205 resistance, the price could make another attempt to clear the $210 resistance zone.
If the bulls succeed in clearing the $210 resistance, the price could avoid a major downtrend and it might continue to move higher towards the $220 and $230 levels.
If Ethereum fails to clear the $205 and $210 resistance levels, the price could resume its decline. If there is a downside break below the $200 support, the price could even trade below the $198 low.
In the mentioned case, the price could dive towards the $192 support level. Any further losses may perhaps start a major downtrend in the coming sessions.
Hourly MACD – The MACD for ETH/USD is about to move back into the bullish zone.
Hourly RSI – The RSI for ETH/USD is now correcting higher towards the 50 level.
Major Support Level – $198
Major Resistance Level – $205
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Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a DECADE as a financial…
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