Ethereum Eyeing Last Line of Defense: Here Are Key Supports To Watch

By June 19, 2020Ethereum
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Ethereum is declining steadily below the $235 resistance zone against the US Dollar. It seems like ETH could decline heavily if it breaks the $225 support zone in the near term.

  • Ethereum is trading in a bearish zone below $232 and the 100 hourly simple moving average.
  • The price is slowly declining towards the key $225 support zone.
  • Yesterday’s followed major declining channel is still active with resistance near $232 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could decline sharply if it fails to stay above the main $225 support zone.

Ethereum Price Declining Steadily

In the past two days, Ethereum price followed a bearish path from the $238-$240 resistance against the US Dollar. ETH broke many supports such as $235 and $232 to move into a short-term bearish zone.

It even settled below the $232 level and the 100 hourly simple moving average. Ether traded close to the $225 support zone and formed a new intraday low at $226. It is currently correcting higher and trading above $228.

An initial resistance on the upside is near the $230 level. It is close to the 50% Fib retracement level of the recent decline from the $235 swing high to $226 low. More importantly, yesterday’s followed major declining channel is still active with resistance near $232 on the hourly chart of ETH/USD.

Ethereum Price
Ethereum price trades below $230. Source: TradingView.com

The channel resistance is near the 61.8% Fib retracement level of the recent decline from the $235 swing high to $226 low. Therefore, the price is likely to face a strong selling interest near the $232 level and the 100 hourly simple moving average.

On the downside, the main support is seen near the $225 level. If the price fails to stay above the $225 support, there is a risk of a larger decline towards the $218 and $215 levels in the near term.

Chances of an Upside Break in ETH?

To move into a positive zone, Ethereum must break the channel resistance, $232, and the 100 hourly SMA. The next key resistance is near the $238 and $240 levels.

If ether price settles above the $240 resistance zone, it could start a strong increase. The next set of resistances might be near the $250 and $255 levels.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is about to move into the bullish zone.

Hourly RSIThe RSI for ETH/USD is now just above the 40 level, with bearish signs.

Major Support Level – $225

Major Resistance Level – $232

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

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