Ethereum price analysis: ETH/USD in retreat as upside momentum is lost

ETH/USD bulls stopped short of a critical $240.00.
Strong support is created by $219-$220 area.

Tanya Abrosimova Independent Analyst

Ethereum, the second-largest cryptocurrency with the current market capitalization of $24.3 billion, has settled at $226.50 after an unsuccessful attempt to break $240.00 barrier. The coin touched $239.56 high on Tuesday, but failed to hold the ground and retreated to $222.00 low. The coin has lost over 1.5% in recent 24 hours and stayed range-bound since the beginning of the day.

Ethereum's technical picture

On the intraday timeframe, ETH/USD is initially supported by $225.80. This barrier is created by SMA100 (Simple Moving Average) 1-hour. It is followed by $222.80 (the lower line of 1-hour Bollinger Band) and $220.00 (SMA200 1-hour and SMA50 4-hour). Once this area is cleared, the sell-off is likely to gain traction with the next focus on $217.00 (the lower line of 4-hour Bollinger Band coupled with SMA100 1-hour).

On the upside, the local resistance is created by $228.00 ( the middle line of 1-hour Bollinger Band), and psychological $230.00 with SMA50 4-hour located on approach. This barrier is likely to limit the recovery for the time being. However, once it is out of the way, the momentum may gain traction with the next focus on $233.00 (the upper line of 1-hour Bollinger Band) and $238.00 (SMA200 4-hour).