- ETH/USD extended the losses towards $260 but formed a monthly low at $262.
- Bulls must ensure to keep the price above $260, otherwise, Ethereum risks breaking down to $243 support.
Ethereum is facing tough resistance to the upside after the massive drop on Wednesday and during the Asian trading hours on Thursday. Prior to the declines, Ethereum holding ground above $305. The upside had been capped at $315 giving way to declines amid increasing volatility. The drop could not find support at $300, $280 and $270 (all previous support zones). ETH/USD extended the losses towards $260 but formed a monthly low at $262.
While a correction has made it above $270, the confluence detector highlights first resistance at $217.82. Three indicators converge to form the confluence: The previous high 15-mins, previous high 1-h and previous week low. Further correction upwards will come face to face with the resistance at $280 broken support: Bollinger Band 1-h Lower, Previous Low 4-h and Previous Low 1-day. $294 is the strongest hurdle in the medium-term with correction above $300 having to face resistance at $305.
On the downside, initial support is observed at $266. Various technical indicators converging here include Pivot Pint 1-Week S1, 50 SMA 1-D and Previous Low 1-h. Bulls must ensure to keep the price above $260, otherwise, Ethereum risks breaking down to $243 support target.