Ethereum market update: ETH smacks bulls in the face following trendline break

• Ethereum’s failure to break above $205 hurdle killed bull’s confidence in the recovery.
• Ethereum only path is upwards after hitting relatively oversold levels.

The bearish wave is not slowing down for the second day in a row. Ethereum’s failure to break above $205 hurdles seems to have killed bull’s confidence in the recovery. At the same time, this situation opened wide the gates for the bears to have a field day. Ethereum struggles to stay above $195 support yesterday bore no fruits as selling pressure skyrocketed.

The trendline break on hourly timeframe added gasoline into the fire. The armored bears successfully forced ETH through $190 support. However, $185 seems to be holding ground impressively. In fact, a correction is underway towards $190 support turned resistance.

Looking at it from a technical perspective, Ethereum only path is upwards after hitting oversold levels. For instance, the Relative Strength Index (RSI) has slowed down the slope in the oversold territory. A shallow recovery is visible. Therefore, the emergence of the indicator above the 30 levels towards 40 will signal a growing momentum in favor of the bulls.

Ethereum co-founder Vitalik Buterin recently said that Ethereum network is full. He, however, said that scalability is key to ensuring that adoption of Ethereum network continued. He also proposed a reduction of transactions costs which keep on skyrocketing.

ETH/USD 1-hour chart