ETH/USD hit a snag short of $210 after extending gains from $200 on Wednesday.
ETH/USD could easily fall into the hands of the bears if the 100 SMA support is broken.
Ethereum is trying hard to hold above the 100 Simple Moving Average ($204.24) support after retreating from intraday highs around $209. From Monday this week, the main aim has been to keep the price above $200 except the breakout yesterday when ETH/USD broke above a key descending trendline.
In the meantime, ETH/USD is trading at $205 while holding above the aforementioned 100 SMA support in the hourly range. Ether’s downside is adorned with numerous support levels starting with the confluence at $203.88; formed by the 50 SMA and the 50% Fibonacci retracement level taken between the last swing high of $227.26 to a swing low of $179.84. Other key support areas include $200, $195, $190, and $175.
Technically, the trend continues to turn bearish, which could jeopardize Ether’s stability above $200. The Moving Average Convergence Divergence (MACD) features a bearish divergence, signaling the increasing selling action. On the positive side, the MACD is still holding the ground above the mean line (in the positive region). In other words, it is not over for the bulls and the journey to levels higher than $210 has potential.
ETH/USD 1-hour chart
The RSI had already dived under the average (50) but is now trying to reclaim its position above that same average. A sustained uptrend back into the overbought region should help buyers have faith in the uptrend. The main goal is to step above $210 and then shift the focus to higher targets such as $220 and $230.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at firstname.lastname@example.org