Ethereum Price Analysis: Can ETH/USD Defend This Critical Ascending Channel Support?

Ethereum price is pivotal at $230 following rejection from $235.
ETH/USD must hold onto the ascending channel support at all costs because losing it could be detrimental to progress.

Ethereum performance in the last 48 hours has not been impressive. Bearish forces continue to terrorize bulls under $250. Attempts to break above this critical level have culminated in declines as opposed to breakthroughs. The latest bearish swing occurred on Wednesday, sending Ether back to $240. Moreover, the bearish leg extended on Thursday, forcing ETH/USD into another painful trip under $230.

A weekly low was traded close to $225 before a recovery came into the picture. Unfortunately, the bulls lost momentum once again at $235 (previous week resistance). At the time of writing, Ether is pivotal at $230. However, the trend has a bigger inclination to the bearish side.

Holding the price at $230 is ascending channel support. This support has been very instrumental since March when Ethereum dropped to $90. If defended, a bounce towards $240 is expected before the weekend session.

ETH/USD daily chart

The technical picture is also drab based on the RSI and the MACD. The RSI is currently on a downward slope after failing to rise above 60 earlier this week. As long as the trend is downwards, the bearish grip could become stronger, eventually pulling Ethereum towards $220. The very downward trend is emphasized by the MACD’s bearish divergence.

The only slightly positive signal for Ethereum is that the MACD is still holding above the midline. If the sideways trend holds, we can expect consolidation above $230 before a breakout above $235 is staged.

Ethereum Key Intraday Levels

Spot rate: $230

Relative change: -3.00

Percentage change: -1.28%