Ethereum Price Analysis: ETH/USD descending channel resistance breakout loses steam short of $220
|- Ethereum bears are threatening reversal to $200 after bulls failed to clear the resistance at $220.
- ETH/USD is still in the hand of the buyers in spite of the retreat from Monday highs to the short term support at $210.
Ethereum price recently broke out of a descending channel resistance in a bid to push further the recovery started after the nosedive to $175 support in May. The bullish momentum was particularly forceful especially when it came to penetrating the seller congestion at the 50 SMA and the 100 SMA in the 4-hour range. The price action extended above the critical $200 level but fizzled out short of $220.
An intraday high has been reached at $214.86 on Tuesday (lower than Monday’s high above $216). This shows that sellers are getting more confident and could continue to gain more traction against the bulls in the short term.
Meanwhile, the price is teetering 1.86% lower on the day. It has a market value of $210.24 amid a bullish biased trend and high volatility. Looking at the MACD, Ether is still primed for more gains towards $220 as long as the short term support at $210 holds. The indicator is settling into a sideways trend in the positive region. Besides, a minor bullish divergence suggests that buyers have the upper hand. However, the RSI is pointing south as a warning to the bulls to up their game or else risk testing the crucial $200 level.
ETH/USD 4-hour chart
Ethereum confluence resistance and support
Resistance one: $213.44 – Is home to the previous low 4-hour, the Bollinger Band 1-hour middle curve, the Fibonacci 38.2% one-day and the SMA 100 15-minutes.
Resistance two: $228.90 – Highlighted by the previous month high, the pivot point one-week resistance two and pivot point one-day resistance one.
Support one: $211.24 – This zone converges the Bollinger Band one-hour lower, the Fibonacci 61.8% one-day and the SMA ten 4-hour.
Support two: $204.61 – Is the zone where the SMA five one-day, the Fibo 23.6% one-month and the BB one-day middle curve meet.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.