Ethereum update: ETH/USD correcting lower, exiting overbought conditions and continues outperforming Bitcoin and Ripple

ETH/USD is trading around $248, down from the fresh 7-month highs around $272. Ethereum, the other cryptocurrency in terms of market capitalization, is falling as part of the global sell-off that digital assets are experiencing. 

However, Vitalik Buterin's brainchild is weathering the storm better than Bitcoin, the No. 1 digital coin, and Ripple, No. 3. The outperformance of ETH is in line with the trend seen this week, that this crypto is taking the lead. Up to this moment, ETH/USD was leading the rise, and now it is standing out by not suffering massive losses.

One of the factors behind the fall was the decision by the Securities and Exchanges Commission (SEC) to delay its decision regarding a Bitcoin Exchange Traded Fund (ETF), this time by Bitwise. It took the bullish markets time to react. 

ETH/USD Technical Analysis

The Relative Strength Index (RSI) on the four-hour chart is falling below 70, thus exiting overbought conditions. Such a move is essential for the next bullish step. The exit implies a potential rise shortly, as Momentum remains positive.

The round number of $250 is a battleline and $272, the peak mentioned earlier, is a critical resistance line. The next levels to watch are $300 and $320, which capped Ethereum in 2018.

Downside support awaits at $240 which held down ETH/USD just before the recent surge. It is followed by $225 was a temporary support line in recent days, and the $185, that served as a separator of ranges.