Ethereum Price Analysis: ETH/USD Will Drop To $220
Ethereum cryptocurrency exchange rate is consolidating in the range above $ 230, but buyers are unable to break through the resistance barrier at $ 240. Therefore, ETH/USD should become cheaper by $ 220 by June 25th.
- Ethereum price fluctuates around the average cost per 100 hours ($ 234).
- A bearish trend line has formed on the hourly chart with resistance at $ 234.
- The downward movement will accelerate in case of breaking support at the level of $ 230.
On June 15, the ETH rate fell from $ 235 to $ 218 (Bitstamp data), breaking through the support zones of $ 225 and $ 220. Then the price of the asset returned to its previous position but did not exceed $ 236 since at this level they began to actively sell virtual currency. On Wednesday, there was a break up to $ 228 with the correction to $ 234.
The chart shows a downtrend line with resistance in the region of $ 234. The next barrier is at $ 236. If the bulls break through these barriers, Ethereum will rise in price to $ 238 and then to $ 240. Nevertheless, the market situation signals a drop in the price of the coin in the medium term.
What Level Will Ethereum Become Cheaper To?
On June 14, the dynamics of changes in the ETH rate went beyond the bullish trend that arose in March. As a result of the correction, ETH/USD price could not break the line of the upward trend, which now acts as a resistance barrier. Thus, a reversal in the market is only possible if the cost of Ethereum overcomes $ 236.
At the moment, the price of cryptocurrency is located near the border of the downward trend, which began on June 11. Most likely, the ETH rate will not go beyond it and will gradually decline. The bearish trend is not very dynamic, besides, the coin is stably bought back after the dump. Given these factors, it can be assumed that the Ethereum rate will drop to about $ 220 by June 25th.
This year, the situation that may happen in the fall of 2019 may repeat, when after a two-month flat Ethereum fell by 35%. This scenario suggests a fall in the price of ETH to $ 154 by the end of August.
4 hours MACD is in the bullish trend zone
4 hours RSI is above 40 (neutral)
Main support level - $ 230
Main resistance level - $ 238
Nearest pivot points: $ 232 and $ 246.