Technically, the 4-hour chart indicators recovered well from the oversold readings, but are still below their midlines.
Ether Price Facing Tough Challenge
In yesterday’s analysis, we discussed ranging moves between $190.00-215.00 before ETH/USD attempts to break $220.00.
The pair traded with a positive bias during the past three sessions and avoided yet another daily close below $200.00. It managed to go through the $210.00 resistance, but the upside was capped by a bearish trendline on the 4-hour chart.
That bearish trendline was pointed out in yesterday’s analysis, and capped gains near $225.00. There is another trendline positioned at $235.00, so even if buyers clear $225.00, the next one is waiting to contain upsides.
The most important hurdle above $235.00 sits at $250.00. The price is already pulling back from the $226.40 high and trading near $210.00.
Looking at the hourly chart of ETH/USD, there was a break below a bullish trendline at $218.00 and the 23.6 percent Fibonacci retracement level of the last wave from the $174.08 low to $226.40 high.
It seems like the pair is approaching an initial support at $200.00, which holds a lot of importance since it represents the 50 percent Fibonacci retracement level of the last wave from the $174.08 low to $226.40 high.
A break below $200.00 would expose Ether to further declines in the near term. The next major supports are $190.00 and $180.00.
To sum up, selling pressures below $225.00 will definitely be important at this point. We can continue to see more ranging moves above $200.00 before the next move, probably higher.