Ethereum Just Reversed and $240 Is Imminent, Here’s Why

Ethereum failed again to surpass the $288 resistance area against the US Dollar. As a result, ETH price declined sharply below $270 and it might soon revisit the $240 support. Ethereum failed on a couple of occasions to surpass $286 and $288 against the US Dollar. The price is down more than 5% and it broke the key $270 support level. There was a break below a key bullish trend line with support near $280 on the hourly chart of ETH/USD (data feed via Kraken). Bitcoin price is also down 5% and it tumbled below the $9,800 support area. Ethereum Price Could Revisit $240 Recently, we saw a decent upward move in Ethereum above the $270 and $275 levels against the US Dollar. However, ETH price failed to on a couple of occasions to surpass $286 and $288. As a result, there was a sharp decline below the $280 support level and the 100 hourly simple moving average. It seems like there was a harsh rejection near $286 and the price formed a short term double top pattern. There was a clear break below the 50% Fib retracement level of the upward move from the $243 low to $286 high. Moreover, there was a break below a key bullish trend line with support near $280 on the hourly chart of ETH/USD. Ethereum Price It opened the doors for more losses in Ethereum below the $270 support area. The price even spiked below the 61.8% Fib retracement level of the upward move from the $243 low to $286 high. Therefore, there are chances of more losses in the near term below $255 and $250. The next main support for the bulls is near the $240 area. Any further losses may perhaps accelerate the decline towards the $230 support area in the near term. Upsides Capped If Ethereum price starts a fresh increase above the $265 resistance, it could recover towards $270. Though, there is a major resistance forming near the $270 area and the 100 hourly simple moving average. A successful close above the $270 resistance and the 100 hourly simple moving average is needed for a fresh rally. The main hurdle for the bulls is still near the $286 and $288 levels, above which the next aim could be $300. Technical Indicators Hourly MACD – The MACD for ETH/USD is currently gaining strength in the bearish zone. Hourly RSI – The RSI for ETH/USD is now well below the 50 level, with a bearish angle. Major Support Level – $250 Major Resistance Level – $270

from NewsBTC https://www.newsbtc.com/2020/02/20/ethereum-just-reversed-and-240-is-imminent/

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