Technically, the daily chart indicators are still some distance away from reaching oversold levels.
Ether Price Searching for Support
A couple of Chinese bitcoin exchanges recently decided to shut down operations in China, which further ignited Ether selling causing the price to tumble below the $250.00 and $233.00 support levels.
The most important break was below $233.00 and the 61.8 percent Fibonacci retracement level of the last major wave from the $133.79 low to $395.41 high.
It has opened the doors for further declines in the near term and now ETH/USD could even struggle to hold the $200.00 psychological level. The next technical support is around the 76.4 percent Fibonacci retracement level of the last wave from the $133.79 low to $395.41 high at $194.00.
Below $194.00, there is a crucial support zone near $175.00-$180.00 on the daily chart of ETH/USD. The mentioned $175.00 level provided support on a few occasions previously and has potential to hold the current decline.
If buyers fail to protect losses below $175.00, ETH/USD would head towards the July’s low of $133.79. Dropping down to the 30-minute chart, the pair attempted a short-term correction from $220.00 and consolidated for a few hours.
However, Ether failed to overcome selling pressure near $240.00, declined once again, and even broke the $220.00 level. The consolidation support at $220.00 is now a resistance. There is also a bearish trendline positioned near $210.00 to act as a short-term resistance.
Overall, the recent rise in selling interest is driving the market lower. ETH/USD could continue to decline, but supports like $175.00 and $135.00 won’t give up easily.
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