- Support formed at $197 was formidable enough to trigger a rebound earlier this week.
- Ethereum’s technical picture is bearish in the short-term.
Ethereum is still battling the selling pressure despite the short-lived mid-week recovery. The losses towards the end of last week refreshed the losses under $200. Support formed at $197 was formidable enough to trigger a rebound. The impressive gains approached $220 but lost steam around $219.
The diminishing buying power led to a correction below the 61.8% Fib retracement level taken between the last swing high at $225.81 to a swing low at $197.66. Moreover, Ethereum broke the ascending trendline support and later extended the lower leg towards $210.
At present, Ethereum is trading at $213 above the moving averages. The 50 Simple Moving Average (SMA) 1-hour currently at $212.94 will offer support. The 100 SMA 1-hour currently at $211.20 will offer support as well.
Ethereum’s technical picture is bearish in the short-term. The Moving Average Convergence Divergence (MACD) is sliding into the negative region. As the negative divergence increases, sellers continued to tighten their grip. But as long as Ethereum stays above the moving, the potential for recovery is immense.
ETH/USD 1-hour chart
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