- Ethereum has been pulled down by Bitcoin’s correction to $9,600.
- The battle to sustain ETH/USD is underway; technical levels suggests buyers must work harder.
Was it a trap? The recent massive bullish correction among the leading altcoins caught everybody by surprise. As Bitcoin struggled with the resistance, pressed down towards the vital $10,000, cryptos such as Ethereum, Ripple, Litecoin and Bitcoin Cash sprung up in bullish motion. Ethereum, for example, corrected above the stubborn resistance at $180, $190, $200 and $210. The bullish leg also touched $217.80 but left $220 untested.
Unfortunately, these cryptos including Ethereum have not been able to sustain the accrued gains. In fact, Bitcoin’s plunge to $9,600 has pulled Ethereum towards $200 tentative support area. If the accelerated bullish trendline is broken, Ethereum could dive further towards $190. However, as long as the 50 simple moving average (SMA) on the four-hour chart stays above the longer term 100 SMA, buyers are likely to have the energy to keep the price above $200.
Similarly, the moving average convergence divergence (MACD) is at ease within the positive zone. However, the uptrend has slowed down on hitting a high around +8.93. A developing negative divergence suggests that Ethereum bears are trying to permanently regain control. The main trendline will become of importance in the event declines are unstoppable below $190.
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