- ETH/USD bulls failed to stay above $220 resistance.
- Strong support is created by psychological $200.
Ethereum, the second-largest cryptocurrency with the current market capitalization of $22.7 billion, settled above $211.00, having retreated from the recent high of $235.7o reached on July 20. ETH/USD is moving in sync with Bitcoin (BTC) and the rest of the cryptocurrency market driven mostly by technical and speculative factors.
Ethereum has lost nearly 6% of its value on a day-on-day basis and 2.6% since the beginning of Tuesday.
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Ethereum’s technical picture
On the intraday timeframe, ETH/USD is supported by psychological $210, strengthened by the lower line of 4-hour Bollinger Band. Once it is cleared, the sell-off is likely to gain traction with the next focus on $200.00. The next critical support area awaits us at $185-$180.00 support area created by a confluence os SMA200 and the lower line of Bollinger Bands on a daily chart.
On the upside, we will need to see a sustainable move above SMA50 4-hour ($220) and the middle line of 4-hour Bollinger Band ($222) for the upside to gain traction. Once it is out of the way, the next bull’s target at $230.00 will come into view.