Ethereum price failed to break the $232.00 resistance and declined. ETH/USD is currently under pressure and it could extend slides below the $224.00 support.
- Ethereum price struggled to break the $231.50 and $232.00 resistance levels.
- ETH/USD broke an ascending channel with support at $229.00 on the 30-minute chart.
- The price settled below $227.75, which may now act as a resistance.
Ethereum Price Analysis
Yesterday, we discussed a possible upside break above $232.00 in Ethereum price. However, buyers failed to clear the $231.50 and $232.00 resistance levels, resulting in a bearish reaction.
Click to Enlarge Chart
Looking at the 30-minute chart of ETH/USD, the pair formed a few lower high a $234.90, $233.00, $231.50 and $229.50. It declined slowly and steadily after it failed to break the $231.50 and $232.00 resistance levels.
During the drop, it broke the 50% Fib retracement level of the upward move from the $220.49 low to $234.90 high. More importantly, the price broke an ascending channel with support at $229.00 on the 30-minute chart.
There was a close below the $227.75 support and the 25 simple moving average (30-min), which is a bearish sign. At the moment, the price is testing the $224.00 support, below which there is a risk of a sharp decline towards the $220.49 swing low.
The $220.50 support is important since it represents the 1.236 Fib extension level of the upward move from the $220.49 low to $234.90 high.
On the other hand, if the price moves higher, the broken support at $227.75 and the 25 SMA are likely to prevent gains. To move back in a positive zone, Ether buyers need to push the price above $227.75, $228.00 and the 25 SMA.
However, the most significant hurdles for buyers are still the $231.50 and $232.00 resistance levels. In the short term, there could be range moves before the price makes the next break either above $228.00 or below $222.00 in the coming hours. The RSI is near the oversold levels, signaling a short-term recovery towards $227.00 or $227.50.
The market data is provided by TradingView, Bitfinex.