Ethereum (ETH) price analysis: ETH/USD continues downside correction, stays above $200.00

A move below $200.00 will worsen the short-term technical picture.
The significant resistance is created on approach to 226.70.

Tanya Abrosimova Independent Analyst

The second-largest cryptocurrency with the current market capitalization of $22.65 billion has been range-bound on Monday, moving in sync with the rest of the market. At the time of writing, ETH/USD is changing hands at $208.70, off the intraday low touched at $207.20. The coin has lost about 1% on a day-on-day basis and stayed unchanged since the beginning of Monday.

Ethereum’s long-term technical picture

Looking technically, ETH/USD stays inside the daily Bollinger Band with its upper boundary now providing strong resistance for the coin ($225.50). Once this barrier is out of the way, the downside correction may gain traction with the next focus on $226.76. This resistance is created by SMA100 (Simple Moving Average) on a daily chart.

The initial support is created by the middle line of one-day Bollinger Band located under $208.00. However, ETH/USD mid-term sentiments remain bullish as long as it stays above a strong resistance of $200.00. A sustainable move below this handle will darken Ethereum’s technical picture and push the price towards SMA50 daily located at $193.70. It is closely followed by the middle line of one-day Bollinger Band right below $193.00.

On the upside, we will need to see a sustainable move above $226.70 for the upside to gain traction. The next resistance awaits us on approach to psychological $230.00