The cryptocurrency news today show that Ethereum is lacking momentum even with the new signs that ETH got for a rally. The price of the cryptocurrency seems like it is able to close above the 100 SMA and trigger a fresh new rally soon.
As we see ETH slowly moving higher towards the $230 region, we can also see a bearish momentum especially throughout this weekend for ETH. All of these are signs for new troubles which could be emerging tomorrow if the $225 and $220 support levels do not hold.
Readers of our daily ETH news know that Ethereum is lacking momentum which all started as it initiated a decline below the $238 support against the US dollar. This is when the ETH price traded below the $230 support level and settled way below the 100 simple moving average on 4 hours.
The decline in the ETH price extended and Ethereum even went below $220. Here, a ow was formed near $216 before the price started a new upside correction. There was also a noticeable break above the $220 level, plus the 23.6% Fib retracement level of the downward move from a $250 swing high to a $215 low.
Then, the upward move was capped by the $232 resistance. Now, this represents the 50% Fib retracement level of the downward move from a $250 swing high to the low of $215. This is why Ethereum is lacking momentum and how the cryptocurrency did not manage to withhold what it gained in the month of June.
Now, if there is a successful close above $230 and $232, the price of the coin could start a strong increase in the coming sessions. Analysts are expecting a run to $230 and the current initial support is near the $222 level now. A daily close below this level could start a steady decrease. In a case like this, the next support is near $215 and knowing that Ethereum is lacking momentum, the support could also visit the $210 level.
Currently, the technical indicators for the ETH price are as following:
- 4 hours MACD – The MACD for ETH/USD is now starting to lose momentum in the bullish zone.
- 4 hours RSI – The RSI for ETH/USD started visiting lower grounds towards the 50 level.
- Major Support Level – $222
- Major Resistance Level – $232
Do you think that an Ethereum rally is underway?
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