Recently, there was a sharp downside correction in bitcoin and Ethereum. ETH/USD declined below the $250.00 support level and it seems like the price could even test the $225.00 support area.
Key Takeaways: ETH/USD
- Ethereum price failed to surpass the $264.00 and $265.00 levels and declined recently against the US Dollar.
- ETH/USD traded below the key $250.00 support and a bullish trend line on the 2-hours chart (data feed from Bitstamp).
- Most altcoins like XRP, XLM, BCH and EOS are down today.
Ethereum Price Analysis
Today, there was a bearish reaction in bitcoin price below the $7,750 level, igniting downsides in bitcoin cash, ripple and Ethereum. ETH price failed on multiple occasions near the $264.00 and $265.00 levels, and recently started a sharp downside move.
Looking at the 2-hours chart, Ethereum price broke the key $260.00 and $250.00 support levels to enter a bearish zone. The price even settled below the $250.00 level and the 50 simple moving average (2-hours, purple).
Moreover, the price traded below $248.00 and a bullish trend line on the same chart. The decline was such that the price even traded below the $240.00 level and formed a new intraday low near the $231.20 level.
The price is currently consolidating and is testing the 23.6% Fib retracement level of the drop from $264.50 to $231.20. On the upside, there are many hurdles near the $247.50 and $248.00 levels.
Besides, the 50 simple moving average (2-hours, purple) is near $248.00 along with the 50% Fib retracement level of the drop from $264.50 to $231.20. A successful break above the $248.00 and $250.00 resistance levels could only start a decent upward move.
On the downside, an initial support is near the $231.00 and $230.00 levels. If Ethereum price trades below the $230.00 support, the next major support for the bulls near the $225.00 level.
Overall, ETH/USD is currently under pressure below $248.00 and $250.00. Therefore, there are chances of more losses towards the $225.00 support area before the bulls come back into action. Below $225.00, the next crucial supports are near the $221.00 and $215.00 levels.