- ETH/USD came close to DMA50, which is critical for the longer-term forecast.
- The strong resistance is created by $232 handle.
ETH/USD reversed Wednesday’s gains to trade at $214 by the time of writing. The second largest coin by market value has lost 2.3% in the recent 24 hours and 1.5% since the beginning of Thursday amid global sell-off on the cryptocurrency market.
Ethereum’s technical picture
Looking technically, the ETH/USD dropped below SMA50 (1-hour) at $216; however, the downside may be limited as the Relative Strength Index (RSI) is growing from the oversold territory. It means that the price may resume the upside with the first aim at $220 and $223 (Wednesday’s high). This resistance is likely to stop the upside for the time being; however, once it is cleared, the recovery may be extended to $232. This area capped the recovery in September.
On the downside, the initial support is seen at $210. It is followed by 204 (SMA200, 1-hour), strengthened by daily pivot point and by psychological $200. That’s where the short-term ETH bears are likely to hit a pause button.
On the longer-term timescale, the picture remains positive as long as the price stays above DMA50 at $213.94.
ETH/USD, 1-hour chart