Ethereum price falls among the worst-hit cryptocurrencies due to the ongoing crypto carnage. This is the second week in a row that the cryptocurrency market is kick-starting in losses. The blessing in disguise is that it marks a good opportunity to ‘buy the dip’ as long as the investors can be patient to spot a bullish reversal.
Ethereum price is nurturing some semblance of stability after dropping to lows of $195. The shallow recovery in the current session has reclaimed the support at $200. ETH/USD is doddering at $203.97 while battling the resistance at the 38.2% Fibo taken from the last high at $298.89 to a low at $154.36.
ETH/USD 4-hour chart
ETH/USD is also confined within a descending channel. The channel’s support has been very instrumental since the downtrend began at the 2020 highs ($289.89). The resistance on the upside continues to make it difficult for the bulls to rise above the selling pressure.
The Relative Strength Index (RSI) is oversold in the 4-hour range. Which means that a recovery is around the corner. If gains are sustained above $200, prospects for further growth are likely to remain high.
However, selling pressure cannot be ignored, especially with the 50 SMA under the 200 SMA. The widening gap proposes that selling influence is hovering and risks a dive to $190.
ETH/USD Key Levels
Spot rate: $206
Relative change: 7.4
Percentage: 3.64%
Support: $200, $195 and $190
Resistance: $210 and $220
