- Ethereum losses take a break above $226 as the trend turns bullish in favor of a reversal.
- ETH/USD is likely to remain in the bearish hands as long as it fails to break above $240.
Ethereum was able to hold above $230 during the Asian session on Friday. However, as we usher in the European session, renewed bearish pressure is seeing Ethereum spiral under $230. Ether is trading below the moving averages. The 100 SMA at $231.31 and the 50 SMA at $232.26 are now in line to hinder the upwards movement in case a reversal ensues from the ongoing dip.
At the time of writing, ETH/USD is dancing at $228 after trading an intraday low of $226.51. The trend is quickly turning bullish, an indication that the slide under $230 may not be entirely bad for the bulls. If more buyers enter the market to buy low, there is a chance that recovery above $230 could shoot to $240.
Consequently, the high volatility at the moment suggests that price action could be of a higher magnitude. Looking at the RSI, we can tell that a reversal is already in the offing. The trend indicator is pointing north after bouncing off the oversold (30). It is also important to be realistic because the MACD suggests that selling pressure is present and cannot be ignored. A bearish divergence from the MACD puts emphasis on the growing bearish dominance.
Support is anticipated at $225 after $230 caved in. If losses are extended, $220 will come in handy. At the same time, weak support has always existed at $218 (also resistance) based on past price actions. Further down, $200 is a bit of overstretch for Ethereum. Therefore, the most probably move is a bounce off $225 towards $240.
ETH/USD 1-hour chart
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ETH/USD is likely to remain in the bearish hands as long […]