- Ethereum’s price is set to drop to $200
- Ether is trading below $225 and remains at a risk of more losses
- ETH is showing bearish signals and has tested the $215 support
Ethereum News Today – the price of Ether began the day the same way it started the day before. We can see a crucial bearish pattern with resistance near the $225 area via the 4-hour chart of the ETH/USD pair. The coin must recover above $225 to avoid a drop to the $200 support. This past week, ETH/USD started a major downward action below $235 against the USD. The price of ETH broke $225 which is a support level. It settled below the 100-day SMA on the 4-hour time-frame.
This action opened the door for more losses. The price of Ether is consolidating its losses above $215. Note that there are several bearish signals visible here. There is an initial resistance area near $222 and $224. The 23.6% Fib retracement of the downward move from $249 to $215 is also close to the $224 position. There is an important bearish trend line that is forming for ETH/USD on the 4-hour chart with resistance near $225.
Ethereum Could Recover if it Breaks $225
If the price of Ether manages to break the trend line resistance and the $225 area, it could recover to its next major resistance position at $232 and the 100-day SMA (simple moving average) via the 4-hour chart for the pair. The 50% Fib retracement area of the downward move from $249 to $215 is also at the $232 position. Therefore, the price of Ethereum is likely going to struggle near $225 and $232 which are both major resistance positions.
The Ethereum bulls must fight to gain momentum above the $225 area for a successful bullish attempt above the $232 barrier. Ethereum’s first support after this point is visible at the $215 price position. If the bears succeed in pushing the price of ETH below the $215 area, the digital asset could experience a 3% to 5% drop in value.
The MACD Pattern For ETH/USD is Controlled by the Bears
In the above-mentioned case, the price of Ethereum is likely to test the $205 and $200 support levels. Any further losses might open the doors for a push towards $185 support. The 4-hour chart for ETH/USD shows that the MACD pattern is gaining pace in the bearish territory. This implies that the coin is set for more losses in the near-term.
Meanwhile, the RSI (Relative Strength Index) for the ETH/USD trading pair is currently seating well below the 40 level. The price of Ethereum has its major support position at the $215 level. The coins’ major resistance area is seating at the $225 price position. Ethereum’s overall outlook remains bearish at press time.