ETH/USD bleeding resumes – Possible stop $200

Fibo Quantum

  • Ethereum trims gains as cryptocurrencies shed gains across the board.
  • Technical signals are strongly bearish especially with the RSI diving into the oversold region.

Ethereum is falling once again in the same week after facing rejection from the levels above $230. The recent drop found support at $203giving way for recovery. The price stepped above the 38.2% Fib retracement level taken between the last drop from $280 to a low around $203 before a reversal occurred.

In spite of the upward correction, Ethereum continued to trade under the moving averages with the 50 Simple Moving Average (SMA) hindering recovery.

At press time, Ethereum trimming the gains under $210, which means that the recent support at $203 is under risk of giving in to selling pressure. Technical signals are strongly bearish especially with the Relative Strength Index (RSI) diving into the oversold region.

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The Moving Average Convergence Divergence (MACD) trend paints a more negative picture in the near-term. The divergence suggests rising selling pressure continued breakdown in the coming sessions. Ethereum bulls must fight to keep ETH/USD above $200 and push it above $230 in order to come out of the bearish zone.

ETH/USD 1-h chart