- Ethereum recovered nicely from the pit stop at $190 and touch $215 before it stalled.
- The short-term support at the 50% Fib level must be protected to avoid a breakdown below $200.
Ethereum is battling to maintain the gains it accrued during the afternoon trading session yesterday. The price recently recovered from the declines that had it trade below $170 early last week. The recoil towards the end of the week and over the weekend resulted in a nice move past the resistance at $200 and $220. However, the buyers lost their momentum on touching $225 leading to another slide below $200 but supported at $190.
The afternoon session on Tuesday witnessed a great comeback as the buyers bit back at the bears. The break above the 50% Fib retracement level with the last swing high of $228.8 and a low of $170.34 opened the door the extended gains heading to $220 but formed a high at $215 before starting to consolidate the gains.
In the interim, Ethereum is trading between the moving average support and resistance. Where the 50SMA (4-hour chart) is offering support at $204.11. At the same time, the 100SMA on the same chart is limiting the movements north at $220. In addition, the trendline is hindering gains slightly below the 23.6% Fibonacci level.
Ethereum is currently trimming gains while the MACD is ranging at the mean level. Similarly, the RSI is changing direction downwards to show that the sellers are increasing their grip on the price. The resistance turned support at the 50% Fib retracement level must be protected to ensure that a dip to $200 does not occur. Otherwise, Ethereum could decline more to test $190 in the near-term.
ETH/USD 4-hour chart
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