Ethereum Facing Uphill Task Near $240: Key Reasons Why It Could Tumble
Ethereum started a fresh decline from the $245 resistance against the US Dollar. ETH price is currently correcting higher, but upsides are likely to remain capped near $238 and $240.
- ETH price is facing a strong resistance near $240 and the 100 simple moving average (4-hours) against the US Dollar.
- The bears are likely to remain in control as long as the price is below $240.
- There is a key connecting bearish trend line forming with resistance near $240 on the 4-hours chart of ETH/USD (data feed via Kraken).
- The pair could continue to move down towards the $225 and $220 levels in the near term.
Ethereum Price Could Struggle Near $240
This past week, Ethereum extended its decline below the $240 and $238 support levels against the US Dollar. ETH price even settled below the $236 level and the 100 simple moving average (4-hours).
Ether traded as low as $230 and it is currently correcting higher. It broke the $232 level, plus the 23.6% Fib retracement level of the recent decline from the $245 high to $230 swing low.
However, the price facing a strong resistance near $240 and the 100 simple moving average (4-hours). There is also a key connecting bearish trend line forming with resistance near $240 on the 4-hours chart of ETH/USD.
Ethereum price trades below $235. Source: TradingView.com
The 100 SMA is close to the 50% Fib retracement level of the recent decline from the $245 high to $230 swing low. Therefore, an upside break above the $236 and $240 levels won’t be easy. If the bulls succeed, the price could move into a bullish zone above $240.
The next major resistance is near the $245 level, above which the bulls are likely to aim a larger upward move towards the $255 and $262 levels in the coming days.
More Losses in ETH?
If Ethereum fails to continue higher above the $236 and $240 resistance levels, there are chances of more losses. The first major support is near the $230 level.
The next major support is near the $224 level, below which the bears are likely to target a strong bearish break below the $220 support level.
4 hours MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
4 hours RSI – The RSI for ETH/USD is currently just below the 50 level.
Major Support Level – $230
Major Resistance Level – $240
Risk disclaimer: 76.4% of retail CFD accounts lose money.