Ethereum market overview: ETH/USD defends $170 support; shallow recovery ongoing

Ethereum bled profusely towards the close of the session on Tuesday. The analysis on Wednesday discussed ETH/USD ability to stay above $200 due to the short-term support at $205. However, the analysis did not go as we discussed because Ethereum forcefully breached $200 support area.

The next support target at $190 tried and failed to mitigate the losses which later extended below $180. A low formed at $173.73 above the major support at $170. A recovery price action is underway. ETH/USD is flirting with $180.44 amidst a weak bullish momentum.

The technical picture is slightly positive, for instance, the Relative Strength Index is battling to resurface above the oversold. This follows a drop to levels around 10.5. If the RSI sustains headway toward the average, buyers will have the confidence to push the price towards $200.

Another key indicator is the Moving Average Convergence Divergence (MACD). Following the drop inside the negative zone, the indicator appears to have found balance at -6.72. If the current zero divergence turns positive, Ethereum is likely to trend towards $190 and later scale the levels to $200.

ETH/USD 1-hour chart