Ethereum Price Analysis: ETH/USD starts the correction, $200.00 to keep bears at bay

ETH/USD has retreated from the recent high amid technical correction.
The long-term trend remains bullish as long as the price stays above $200.00.

Tanya Abrosimova Independent Analyst

Ethereum tested $227.36 during early Asian hours and retreated to $217.80 by the time of writing. The second-largest digital asset has gained over 8% of gains on a day-to-day basis and 2% since the start of the day. Despite the downside correction, ETH/USD is still one o the best-performing assets in the recent seven days out of top-10. Ethereum's market capitalization reached $24 billion, while its average daily trading volume is $28 billion.

ETH/USD: Technical picture

On a daily chart, ETH/USD jumped above the upper line of the Bollinger Band (currently at $218.20). This development usually implies that the asset is overbought and may be vulnerable to a short-term correction. The RSI on a daily chart confirms the overbought state of ETH, though there are no clear signs of reversal as of yet. ETH/USD.

On the intraday charts, ETH/USD has settled above the middle line of the 1-hour Bollinger Band, while the RSI has exited an overbought territory and shows signs of the bearish reversal. It means that the coin is less vulnerable to the deep correction and may enter a consolidation phase in the current range limited by $218-217 on the downside and $227 on the upside. If the lower border of the range gives way, the sell-off may be extended towards 1-hour SMA50 at $206 and psychological $200.00