Ethereum Price Analysis: ETH/USD retreats below 1-hour SMA200, more pain ahead

ETH/USD is changing hands at $228.60. The coin has lost over 1% since the start of the day and gained 1.4% on a day-to-day basis. Ethereum is the second-largest digital asset has the current market value of $25.6 billion and an average daily trading volume of $6.5 billion. ETH/USD tested the high of $232.80 before another bearish wave on the cryptocurrency market pushed it back below $230.00 and towards the lower boundary of the recent consolidation channel. Despite the sell-off, the coin is moving within a short-term bullish trend amid low volatility.

ETH/USD: Technical picture

ETH/USD broke below the downward-looking 1-hour SMA200 at $229.00. Now this technical barrier serves as a local resistance for the coin that needs to be taken out for the upside momentum to regain traction. Once this happens, the coin will proceed to the psychological $230.00 and to the recent high of $232.80.  A sustainable move above this area will improve the short-term technical picture and allow for an extended recovery towards $240.00. This barrier is reinforced by the upper line of the daily Bollinger Band. 

On the downside, the local support is created by the 1-hour SMA50 at $227.77. This MA stopped the sell-off earlier during the day, which means it can create a short-term floor for the coin if the sell-off is resumed. Once it is cleared, psychological $220.00 and the lowest level of the previous week at $216.37 will come into focus. If the price moves below this area, the downside momentum will gain traction and push the price to $200.00; however the sustainable decline below this level looks unlikely at this stage.

ETH/USD 1-hour chart