Ethereum price faces rejection at $228, tumbles to seek support at $220.
ETH/USD is in grave danger of losses to $200 as long as it stays under the ascending channel support.
Ethereum price corrected below critical ascending channel support last week. This poked massive holes in the mission of pulling the price above $250. Instead, Ether continues with the exploration of lower levels under $220. Over the weekend, support was embraced at the 61.8% Fibonacci retracement level taken between the last drop from $290 to a swing low at $90.75.
The recovery that ensued following the drop made it above $225 but could clear the seller congestion at $228. Besides, the prevailing trend across the market has a bearish inclination that is favoring the sellers. ETH/USD has reverted back to $220 support. If this zone gives in to the selling pressure, the next rendezvous would be $215 (61.8% Fibo).
Unfortunately, sellers are unlikely to be satisfied with $215 as their main intent is to breakdown Ethereum to $200. They are supported by various indicators including the Moving Average Divergence Convergence (MACD) and the Relative Strength Index (RSI).
ETH/USD daily chart
The MACD has crossed into the negative region in addition to a visible bearish divergence. If a recovery above the midline fails to occur in the near term, losses for the second-largest crypto are likely to surge. The RSI confirms the bearish picture with its downward slopping motion. Consolidation is possible if it holds above 40.
For now, buyers should continue playing defense tactics and ensure that the price does not drop under $220. If push comes to shove $215 should be the stopper for the sellers. Focus also needs to shift to $230 as it would help encourage more buyers to join the market.
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