Ethereum price analysis: sellers push ETH/USD towards $230

ETH/USD has lost over 7% in the recent 24 hours.
The sell-off may be extended towards psychological $200.00.

Tanya Abrosimova Independent Analyst

Ethereum tumbled below $240.00 barrier during early Asian hours on Thursday. The second largest digital asset with the current market capitalization of $25.1 billion has lost over 7% of its value in recent 24 hours and touched $233.75 low amid global sell-off on the cryptocurrency market. The coin is driven mostly by technical factors and speculative sentiments.

Ethereum's technical picture

ETH/USD should return above $240.00 handle as soon as possible to mitigate the immediate downside pressure. However, a stronger resistance awaits the price in $248.00-$249.00 area. A cluster of technical barriers there includes the middle line of 4-hour Bollinger Band, Simple Moving Average (SMA)50 4-hour and 23.6% Fibo retracement of the upside move from April 25 low. Once it is cleared, the upside is likely to gain traction with the next focus on $251.50-$252 (SMA50 and SMA100 1-hour).

On the downside, a sustainable move below $230 will increase the downside pressure and take the price to as low as $210.80 (middle line of 1-day Bollinger Band). This barrier is followed by psychological $200.00, where new buyers should join the market and initiate the recovery.