Ethereum price analysis: ETH/USD in recovery mode, gains over 8%

ETH/USD bulls managed to push the price above $220 resistance.
Strong resistance is created by $230-235 area.

Tanya Abrosimova Independent Analyst

Ethereum, the second-largest cryptocurrency with the current market capitalization of $23.7 billion, is hovering above critical $220,00 рфтвду. The coin tested area above $225.00 during early Asian hours; however, this barrier remains unbroken so far. ETH/USD is moving within a strong bullish channel on the intraday level, in sync with the cryptocurrency market recovery. At the time of writing, ETH/USD is changing hands at $222.13, up over 8% on a day-on-day basis and up 2.5% since the beginning of Thursday.

Ethereum's technical picture

ETH/USD hit the recent low at $200.00 on Wednesday and has been moving upwards ever since.

On the intraday timeframe, ETH/USD is initially supported by a confluence of SMA100 (Simple Moving Average) and SMA200 1-hour at $217.30. Once it is out of the way, the sell-off is likely to gain traction with the next focus on $210.00 with SMA50 1-hour located on approach. The critical support is created by psychological $200,00.

On the upside, the initial resistance comes at $225.00. This barrier is protected by a confluence of strong technical indicators including the intraday high and the upper line of 1-hour Bollinger Band. We will need to see a sustainable move above this area for the upside to gain traction with the next focus on $230.50 (the upper line of the previous channel). Then comes $235.00 (July 29 high).

Considering that the intraday Relative Strength Index (RSI) has come close to an overbought territory and starts reversing down, the short-term downward correction before another bull's wave is a definite possibility.