- Ethereum renews the bearish trend targeting $200.
- The pullback seems necessary for the next leg towards $360.
Ethereum is among the biggest losers on the day. The crypto has transformed quickly from being among the best performing crypto assets during the latest weekend session. Ethereum pushed the gains higher above $220 and even closed in on the resistance brought about the 61.8% Fibo retracement level taken between the last swing high 365.55 to a swing low of $113.68.
A new 2020 high was established at $231 before the sellers swung into action, pushing back the throttle. ETH/USD is currently dancing under the broken support at $220. The ongoing selling pressure is likely to continue in the near term.
ETH/USD daily chart
According to the prevailing technical levels if a reversal fails tom occur above $220, ETH/USD could dive lower, testing the support at $200. The downside movements can be confirmed by the downward slopping RSI.
On the brighter side, as long ETH stays above the 200 SMA, the bulls will remain relatively in charge and could eventually gather the strength to push then price into a bullish pattern with the main aim set on $360. The sentiments have been shared by Nik Patel, a renowned crypto analyst on Twitter. He wrote:
“Over the past couple of weeks, price has also closed strongly back above the 200MA and 360MA and is now at prior support turned resistance ~$230. I could see Ethereum taking a breather here, if only to retest trendline support and the double top at $200 as new support.”
This could eventually turn the “turning market structure bullish and opening up a move to retest $360.” For now ETH/USD is trading at $218 while battling with increased selling activity.
ETH Technical Levels
RSI: Bearish signals
Resistance: $220 and $230
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I am an entrepreneur and a writer with a bachelors degree in Computer Science. I manage the blockchain technology and crypto coverages at Coingape. follow me on Twitter at @arya_achal or reach out to me at achal[at]coingape.com.