ETH/USD Upside Capped As Sentiment Begins To Shift
|Ether drops as risk appetite firms and bullish sentiment fades against the US dollar and bitcoin.|
|ETH/USD is following an important bearish trendline with resistance at $240.00 on the 2-hour chart.|
|ETH/BTC also declined and cleared the 0.095BTC support zone.|
Technically, the 30-minuite chart indicators are reaching extreme oversold readings.
Ether Price Drop May Continue
The July 2 ETH/USD high of $291.31 looks increasingly likely to hold in the short term as sentiment begins to shift. Ether continues to struggle to gain any upside traction deposit oversold readings.
The negative sentiment persists for ETH/USD, with the pair now poised to extend its losses below $240.00. There is a descending channel forming with resistance at $236.00 and support around $230.00 on the 30-minute chart.
The channel might continue to cap the upside above $240.00 and the 23.6 percent Fibonacci retracement of its latest decline from the $251.18 high to $232.84 low.
Above the channel resistance, the $240.00 level (support turned resistance) is a major hurdle for buyers as it is also the 50 percent Fibonacci retracement of the decline from the $251.18 high to $232.84 low.
Looking at the 2-hour chart, ETH/USD is following a bearish path with two declining trendlines resistance of $240.00. Clearly, the $240.00 level is an important junction for Ether buyers. If they succeed in breaking the stated level, the pair has room to extend gains towards the $250.00-260.00 region.
On the downside, the last low of $230.32 might hold losses one more time. However, a break below $230.00 would encourage sellers to take Ether’s price towards the next major support zone of $210.00-200.00.
The short-term picture is neutral-to-bearish for ETH/USD, given that in the 2-hour chart, the price is facing resistance at $240.00. I think the pair may continue falling to test the downside border of the support cloud near $230.00 and then continue moving downwards towards $210.00.