ETH/USD: Bearish Continuation or Bottom?
|Ether fell sharply and failed to hold an important support at $210.00 against the US dollar.|
|ETH/USD is attempting close below a strong support zone near $200.00 on the daily chart.|
|ETH/BTC declined by more than 10 percent and traded below the 0.085BTC support.|
Technically, the daily chart indicators reached oversold readings for the first time in the past three months.
Can Ether Price Avoid Daily Close Below $200.00?
Ether just keeps on falling despite reaching important support levels against the US dollar and bitcoin. ETH/USD was down more than 20 percent to $174.08, and ETH/BTC declined below the 0.085BTC support.
Let’s start with the 2-hour chart of ETH/USD, which clearly points to a strong downside move from $275.00 to $175.00. The pair today traded to a new monthly low at $174.08 before running into fresh buyers.
There was a break below a short-term support at $240.00, igniting a sharp downside move. The decline was such that the pair even failed to hold the $210.00-200.00 support zone.
A bearish trendline with current resistance as $225.00 protected gains in Ether. At the moment, it seems like the $175.00 level is holding losses. There is a chance of a short-term bottom at $175.00 for a correction towards $200.00 or $225.00.
To overcome selling pressure, the price needs to break the trendline resistance at $225.00 and the 50 percent Fibonacci retracement of the decline from the $275.00 high to $174.08 low.
However, the most important move would be a daily close below $200.00. Looking at the daily chart of ETH/USD, it is quite clear that the $200.00 handle is a strong support and a close below it could add to bearish pressures.
The pair must avoid a daily close below $200.00. If it succeeds, buyers may have a real chance of attempting a substantial recovery.
In the short-term, any major setbacks below $175.00 seem unlikely. A gradual rise is possible towards $200.00 and $225.00.