Ethereum Price Forecast: ETH/USD Tanks To $220 But Defends Channel Support, Are The Bulls Safe Now?

Ethereum 2.0

Ethereum Price Forecast: ETH/USD Tanks To $220 But Defends Channel Support, Are The Bulls Safe Now?

  • ETH/USD stability from now henceforth depends on the 61.8% and ascending channel support areas.
  • Ethereum defends support at $220 after free-fall through last week’s support at $225.

Ethereum was forced down another gruesome ride on Monday during the European session. The second-largest cryptocurrency follows Bitcoin price action closely. As BTC dived under $9,000 for the first time in June, Ethereum broke below last week’s support at $225. At the moment, the digital asset is trading at $224 after establishing lower support at $220.

Despite the massive drop, Ethereum has been able to defend the ascending channel support. As long as Bitcoin this support stays intact, the potential for a reversal would remain high. This support is also aided by the 61.8% Fibonacci retracement level taken between the last swing high at $290.43 to a swing low at $91.41. In addition to that, the daily chart shows Bitcoin Cash trading above the moving averages.

In this case, the 50 SMA is in line to offer immediate support while losses under $200 will sort to seeking anchorage at the 100-day SMA. From a technical point of view, Ethereum is likely to enact a reversal above $225. The RSI has slowed down the downward momentum. Holding above the midline would encourage more buyers to enter the market.

ETH/USD price chart

7:19 AM

BTC/USD price chart
BTC/USD price chart by Tradingview

According to the MACD, sellers still have the upper hand. However, this does not mean buying activity is non-existent. In fact, the indicator is still holding in the positive region. It shows that there is enough bullish activity to keep Ether above the key support at $220. On the downside, the bulls lack the volume and a catalyst to effect a significant recovery and sustain gains.

Ethereum Key Intraday Levels

Spot rate: $224

Relative change: -7.27

Percentage change: – 3.14%

Trend: Bearish

Volatility: High

Summary
Ethereum defends support at $220 after free-fall through last week’s support at $225.
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Ethereum defends support at $220 after free-fall through last week’s support at $225.
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Ethereum Price Forecast: ETH/USD Tanks To $220 But Defends Channel Support, Are The Bulls Safe Now? ETH/USD stability from now henceforth depends on the 61.8% and ascending channel support areas.
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Author: John Isige
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
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John Isige 607 Articles
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
Follow John @