Ethereum price analysis: ETH/USD bears set eyes on $240.00 barrier

ETH/USD extends the decline amid broad-based sell-off on the cryptocurrency markets.
The critical support is located on the approach to $240.00.

Tanya Abrosimova Independent Analyst

Ethereum, the second largest cryptocurrency with the current market capitalization of $29.6 billion, has extended the decline during Asian hours on Tuesday. The coin is changing hands at $276.00, down nearly 7% on a day-on-day basis and 6% since the beginning of Tuesday's trading. The sell-off is caused by technical factors and speculative positioning on the market.

The initial support is created by the intraday low of $276.00. Once it is cleared, the sell-off may be extended towards $274.86, which is the lowest level of June 27. The next barrier comes at $267.30 (SMA50, daily chart). It is followed by $246.14 (the lower boundary of 1-day Bollinger Band) and $240.00.

On the upside, we will need to see a sustainable recovery above $300 to mitigate the initial bearish pressure. However, intermediate resistance is also located at $285.00 (the broken upside trendline) and $290.00.