Ethereum price analysis: ETH/USD in retreat as upside momentum is lost
|- ETH/USD bulls stopped short of a critical $240.00.
- Strong support is created by $219-$220 area.
Ethereum, the second-largest cryptocurrency with the current market capitalization of $24.3 billion, has settled at $226.50 after an unsuccessful attempt to break $240.00 barrier. The coin touched $239.56 high on Tuesday, but failed to hold the ground and retreated to $222.00 low. The coin has lost over 1.5% in recent 24 hours and stayed range-bound since the beginning of the day.
Read also: Ethereum has earned public recognition on par with Bitcoin
Ethereum's technical picture
On the intraday timeframe, ETH/USD is initially supported by $225.80. This barrier is created by SMA100 (Simple Moving Average) 1-hour. It is followed by $222.80 (the lower line of 1-hour Bollinger Band) and $220.00 (SMA200 1-hour and SMA50 4-hour). Once this area is cleared, the sell-off is likely to gain traction with the next focus on $217.00 (the lower line of 4-hour Bollinger Band coupled with SMA100 1-hour).
On the upside, the local resistance is created by $228.00 ( the middle line of 1-hour Bollinger Band), and psychological $230.00 with SMA50 4-hour located on approach. This barrier is likely to limit the recovery for the time being. However, once it is out of the way, the momentum may gain traction with the next focus on $233.00 (the upper line of 1-hour Bollinger Band) and $238.00 (SMA200 4-hour).
ETH/USD 1-hour chart
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.