- Ethereum bearish action targets resistance turned support at $240.
- Ethereum bulls scatter as sellers swing into action amid calls for revenge.
Ethereum has more than doubled in value since the beginning of the year. Prior to the current bearish action, ETH had spiked over 122% (approximately a jump by $151). Unfortunately, the surge that started on Wednesday fizzled under $280. Sustaining upside action became incredibly difficult especially amid the widespread correction in the market.
The second-largest crypto dived under a couple of key support areas at $270 and $260. At the time of writing, the bulls are trying to find balance at $260 and hopefully place the crypto back in the trajectory towards $280 and eventually $360.
Ethereum technical picture
The 4-hour chart clearly shows the bulls losing traction despite them being in the driver’s seat for almost three consecutive days. The Relative Strength Index (RSI) in the same range seems to be retreating from the recent high at 88. The downward momentum reflects Ether’s drop from yearly highs at $274 to $258 (market value).
Similarly, the momentum indicator doubles down on the control the bears have, which means that declines are likely to last longer. If the losses continue under $260, support is expected the accelerated trendline (dotted), the 50 SMA, the main trendline as well as the 100 SMA at $204.