Ethereum price declined sharply below $200.00 against the US Dollar. ETH/USD may correct higher, but it is likely to drop to $180.00.
- Ethereum price is under a lot of pressure below the $204.00 support area against the US Dollar.
- ETH/USD broke a major bullish trend line with support at $221.00 on the 2-hours chart.
- The pair is currently correcting above $195.00, but it may well drop further towards $180.00.
Ethereum Price Weekly Analysis
After failing to move above the $228.00 and $230.00 resistance levels, Ethereum price started a sharp bearish wave. The ETH/USD pair dropped heavily and broke many supports near the $221.00, $210.00 and $200.00 levels.
Looking at the 2-hours chart, the price traded towards the $184.00 level and settled below the 25 simple moving average (2-hours). The mentioned drop was initiated after the price broke a major bullish trend line with support at $221.00.
During the drop, the pair broke a major support near the $204.00 level and cleared the $200.00 handle. There was even a break below the 1.236 Fib extension level of the last wave from the $203.68 low to $238.89 high.
Moreover, there was a break below the $190.00 level and the price traded as low as $185.40. Later, there was an upside correction above the $190.00 and $192.00 levels.
It seems like the price may perhaps continue to correct above the $200.00 level. However, it is likely to face a strong resistance near the previous support area near $204.00. Once the current correction is over, the price could drop again below the $192.00 level.
There are high chances of it testing the 1.618 Fib extension level of the last wave from the $203.68 low to $238.89 high at $191.93. The overall price action is bearish for ETH/USD below the $204.00 level, above which the price may attempt a larger upside correction towards the $211.00 and $214.00 levels.
On the downside, a break below the $181.93 level may ignite further slides towards the $174.00 level.
The market data is provided by TradingView, Coinbase.