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6 June 2023
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Ethereum Price Forecast: ETH/USD Tanks To $220 But Defends Channel Support, Are The Bulls Safe Now?

  • ETH/USD stability from now henceforth depends on the 61.8% and ascending channel support areas.
  • Ethereum defends support at $220 after free-fall through last week’s support at $225.

Ethereum was forced down another gruesome ride on Monday during the European session. The second-largest cryptocurrency follows Bitcoin price action closely. As BTC dived under $9,000 for the first time in June, Ethereum broke below last week’s support at $225. At the moment, the digital asset is trading at $224 after establishing lower support at $220.

Despite the massive drop, Ethereum has been able to defend the ascending channel support. As long as Bitcoin this support stays intact, the potential for a reversal would remain high. This support is also aided by the 61.8% Fibonacci retracement level taken between the last swing high at $290.43 to a swing low at $91.41. In addition to that, the daily chart shows Bitcoin Cash trading above the moving averages.

In this case, the 50 SMA is in line to offer immediate support while losses under $200 will sort to seeking anchorage at the 100-day SMA. From a technical point of view, Ethereum is likely to enact a reversal above $225. The RSI has slowed down the downward momentum. Holding above the midline would encourage more buyers to enter the market.

ETH/USD price chart

7:19 AM

BTC/USD price chart
BTC/USD price chart by Tradingview

According to the MACD, sellers still have the upper hand. However, this does not mean buying activity is non-existent. In fact, the indicator is still holding in the positive region. It shows that there is enough bullish activity to keep Ether above the key support at $220. On the downside, the bulls lack the volume and a catalyst to effect a significant recovery and sustain gains.Advertisement

Ethereum Key Intraday Levels

Spot rate: $224

Relative change: -7.27

Percentage change: – 3.14%

Trend: Bearish

Volatility: High

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