- Ethereum’s failed attempt to correct above $205 culminates in a retreat under $200.
- The prevailing trend is strongly bearish especially with the RSI heading south.
Ethereum formidable move from last week’s lows smashed through $200 hurdle. However, the failure to break above $205 allowed the sellers an easy-takeover. For this reason, Ethereum is retreating below $200 (failed support).
The most probably short-term support is the 50 Simple Moving Average (SMA) one-hour currently at $197.23. If this level fails to hold, the next tentative support is $195 while extended declines will find cushioning at the 38.2% Fib retracement level with the last swing high from $204.49 to a swing low of $173.03 around $185 area. Last week’s low at $173.03 will offer the much-needed support in case $180 fails to hold.
Read also: Bitcoin price analysis: BTC/USD rising wedge pattern reaction risks breakdown to $9,400
The prevailing bear pressure is analysis-backed. The Relative Strength Index (RSI) is moving further down from the overbought region. The gradual slope shows that Ethereum bears are slowly gaining traction against the bulls. The remaining bullish indicator in the mean-time is the fact that the 50 SMA is widening the gap above the longer-term 100 SMA.
ETH/USD 1-hour chart
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