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  • Ethereum contains the price action within an ascending channel despite the retreat from the recent high at $227.
  • ETH/USD embraces intraday support at $202 as bulls struggle to stay above the critical $200 level.

Ethereum price is facing intense selling pressure after the recovery on Tuesday failed to sustain gains above $212. Sellers are forcing Ethereum towards the critical $200 level. However, an intraday low has been reached at $202 (functions as a short term support area). Meanwhile, the prevailing bearish trend coupled with the expanding volatility hints that sellers could thrust ETH/USD into the $190’s range.

ETH/USD is trading at $204 at the time of writing. The price action, although bearish is locked within an ascending channel, whose support has been intact since the recovery from the crash in March. On the upside, the channel resistance limited the impressive gains above $220 in the last week of April where Ethereum achieved a new monthly high at $227.

According to the prevailing technical picture, Ethereum is likely to continue with the downward price action in the coming sessions. The RSI is pushing the retreat from the overbought farther towards the average, clearly stating that sellers are in control. Consequently, if ETH slides under $200, buyers could seek support at the 50% Fibonacci level, the 200-day SMA and 50-day SMA.

ETH/USD daily chart

ETH/USD price chart