Over the past day, the Ethereum cryptocurrency rate (ETH) fell by 7%. ETH/USD overcame the key support zone at $ 240. With a high degree of probability, the bearish trend will continue in the market, so ETH/USD will become cheaper by $ 210 by July 2.
Key Points
- The bulls did not manage to overcome the resistance at the level of $ 250, because of this Ethereum sharply lost in price.
- A downtrend line has formed with resistance at around $ 233.
- The cost of ETH will be reduced to $ 210 if the support zone in the region of $ 230 does not stand.
A bullish trend arose in the Ethereum market this week, as a result of which ETH/USD asset rose from $ 227 to $ 249 (Bitstamp data). However, on Wednesday, the virtual currency began to be actively dumped. Bears broke through the support at $ 240 and $ 230, and ETH/USD fell to $ 227.
On Thursday, Ethereum rate corrected to $ 231 and now fluctuates in the range above the support zone in the region of $ 230. The chart demonstrates a downward trend line with resistance at around $ 233. If buyers overcome this barrier, the rate will rise to $ 240. Otherwise, the price will fall to $ 220 next week. Breaking support around $ 220 will trigger an acceleration of the downward movement up to $ 200.
Ethereum Is In Danger Of Plummeting
During the last dump, the dynamics of changes in the value of ETH went beyond the bullish trend, which began in March 2020. If ETH/USD does not return to the specified range (as happened on June 21) until June 29, a full-scale reversal will take place in the market. A positive scenario involves the increase in the price of an asset to the border of a bearish trend that started in 2019, which is located at $ 267.
In June, the turnover of smart contracts in the Ethereum blockchain exceeded 1.5. Paradoxically, the growth of social activity in a decentralized network signals an impending dump. For example, at the end of June 2019, the demand for smart contracts reached 1.2, and the price of ETH fell by 47%. In mid-February 2020, a similar phenomenon occurred: after the popularity of the Ethereum blockchain grew, it “stumbled” and flew down by 70%.
Technical indicators:
- 4 hours MACD is in the bearish trend zone.
- 4 hours RSI is above 40 (in the neutral area).
- The main support level is $ 220.
- The main resistance level is $ 240.
- Nearest pivot points: $ 227 and $ 235.
Source: en.bit.news
