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  • Ethereum price recovery cut short at $235, allowing the sellers to sweep in forcing drop under $230.
  • Ethereum remains relatively in the hands of bulls in spite of drop: The MACD recovery trend shows.

Ethereum price still lags the falling wedge pattern breakout discussed during the Asian session on Tuesday. The price is still stuck under $230 and dodders at $227 following a 2.12% loss. Volatility is shrinking by the hour, although the cryptocurrencies live rates show that the short term trend is in the hands of the bulls.

ETH/USD is also trading below the moving averages, whereby the 50 SMA on the 4-hour chart is contributing to the resistance at the weekly high at $235. The 100 SMA is holding the ground above the next hurdle at $240.

It is apparent that Ethereum will continue to explore the downside especially if the technical indicators keep sending bearish signals. Taking the RSI into account, we find that the path of least resistance is downwards. The same downtrend momentum is reflected by the momentum indicator in the same 4-hour timeframe.

On the other hand, the MACD’s recovery from -11.05 to -0.30617 suggests that the bulls are relatively in control. In addition, a bullish divergence stamps down on the bulls’ position above the bears. In other words, Ethereum remains bullish but lacks a catalyst to sustain growth above $230.

ETH/USD 4-hour chart

ETH/USD price chart

Ethereum confluence support and resistance”

Support one: $226.23 (SMA ten 4-hour and the Bollinger Band 1-hour lower curve).

Support two: $221 (Pivot Point one-day support one and the Fibo 61.8% one-month).

Support three: $212.04 (SMA 50 one-day and the BB one-day lower curve).

Resistance one: $228.59 (Fibonacci 38.2% one-day and the SMA ten 15-minutes).

Resistance two: $230 (BB 15-mins upper curve and the previous high 4-hour).

Resistance three: $235.69 (Previous high one-day and SMA 200 1-hour).

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