Ethereum fails to hold above $200; reversal greatly depends on the ability to defend channel support.
On the brighter side, the bulls have not lost control entirely despite the drop from $204.12.
Ethereum tried but failed to stay above $200 despite the awesome start of the week. An impressive move staged from last week’s low at $176.68 initially stepped above both the 50 Simple Moving Average one-hour and the 100 Simple Moving Average one-hour. The buyers confident in the recovery trend pushed ETH above the critical $200 level. Although there was an attempt to clear the resistance at $205, Ethereum achieved a high of $204.12 before retracement kicked in.
ETH/USD 1-hour chart
ETH/USD Chart by Tradingview
At the time of writing, Ethereum is making strides under $200. Precisely trading at $199.24 amidst a weakly building bearish momentum. Despite the breakdown, ETH is still trading above the above moving averages. Moreover, the bulls have reinforced their position at the ascending channel support.
Therefore, it is vital that the support channel supported is guarded otherwise a break below it could lead to breakdown to the major support zone at $184 – $180. However, a couple of short-term support areas will try to cushion the crypto from the fall, they include $195 and $190.
Looking at the trend technically, the bulls have not lost control entirely despite the drop from $204.12. In fact, the slightly upward pointing Relative Strength Index (RSI) suggests that buying strength is likely to exceed the selling power. Moreover, the RSI has sustained position above 50 (average) signaling the ability by the bulls to not only defend key support but reverse the price above $200 in the near-term.
Ethereum Key Technical Levels
Spot rate: $199.25
RSI: Slightly bullish above average.
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