Ethereum (ETH) Fails to Hold above $240, Encounters Further Selling

Ethereum (ETH) Fails to Hold above $240, Encounters Further Selling

Key Resistance Levels: $225, $250, $275
Key Support Levels: $150, $125, $100

ETH/USD Long-term Trend: Bullish
Ethereum’s recent fall was caused by the bulls’ inability to sustain above $240 price level. Since on February 25, the market has been fluctuating above $220 before its upward move to the high of $246. As the price breaks above $240, it was expected of the coin to revisit the previous high above $286.

The bulls could not sustain the upward move and they were repelled. The price dropped from a high of $252 to $199. There is possibly of another downward move of the coin. Ethereum may further depreciation to the low of $180 or $197 if the selling pressure continues.

ETH/USD – Daily Chart

Daily Chart Indicators Reading:
Ethereum is now in bearish momentum. The previous bullish momentum was interrupted because the bulls failed to push the price upward. Currently, the market is below 25% range of the stochastic. The market is now in a bearish momentum approaching the oversold region.

ETH/USD Medium-term Trend: Ranging
On the 4 hour chart, the coin has been in a sideways trend. The sideways trend is ongoing as ETH makes a downward move. The third attempt was unsuccessful as price fell to the low of $210 but move up to make a retest at $250. The retest at $250 catapults the coin to further depreciation. Ether has reached a low of $190’.

ETH/USD – 4 Hour Chart

4-hour Chart Indicators Reading
The 21-day SMA and 50-day SMA are sloping horizontally indicating that the coin is in a sideways trend. The Relative Strength index period 14 is level 31 indicates that the coin is approaching the oversold region of the coin. It is also below the centerline 50.

General Outlook for ETH
Ethereum is bound is still under bear control. It was assumed that Ether will fall but will rebound at a low of $197. Nevertheless, if the price fails to rebound but drops below $180, it will portend negatively for the coin. Besides, since the low at $200 is broken, the price is likely to fall to the $180 low

ETH Trade Signal
Instrument: ETHUSD
Order: Sell
Entry price: $194
Stop: $200
Target: $180

Note: Learn2Trade.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.