Ethereum Nosedives 15% and $185 Is Looming: Here’s Why

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Ethereum is down close to 15% and it broke the key $215 support against the US Dollar. ETH price remains at a risk of more losses below the $200 and $195 support levels. Ethereum is trading in a nasty downtrend below the $220 support area against the US Dollar.
The price even spiked below the $200 handle and it might continue to move down.
There is a key declining channel forming with resistance near $205 on the hourly chart of ETH/USD (data feed via Kraken).
Bitcoin price is down close to 8% and it tested the $8,000 support area. Ethereum Price Turns Red
In yesterday’s weekly forecast, we discussed a crucial breakdown pattern in Ethereum near $225 and $220 against the US Dollar. ETH price failed to recover and climb above the $235 resistance, resulting in a sharp decline.
The bears took control and the price nosedived close to 15%. There was a break below the key $215 support area and the 100 hourly simple moving average. Moreover, the bears were able to push the price below the $200 handle.
A new monthly low is formed near $196 and the price is currently consolidating losses. Ethereum is testing the 23.6% Fib retracement level of the recent decline from the $232 high to $196 low.
There is also a key declining channel forming with resistance near $205 on the hourly chart of ETH/USD. If the pair fails to recover above the channel resistance and $208, there are chances of more losses. Ethereum Price
An initial support is near the $200 and $195 levels. A successful downside break below the $196 low could open the doors for a test of the main $185 support, where the bulls are likely to take a stand.
Chances of a Recovery
If Ethereum manages to recover above the channel resistance and $208, it may perhaps start a decent short term recovery. The next resistance is seen near the $212 and $215 levels.
The 50% Fib retracement level of the recent decline from the $232 high to $196 low is also near the $215 level to act as a strong resistance. Therefore, the bulls are likely to face a lot of hurdles near the $212 and $215 levels if there is an upside correction in the near term.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly reducing its bearish slope, but there are still many negative signs.
Hourly RSI – The RSI for ETH/USD is currently well below the 40 level.
Major Support Level – $195
Major Resistance Level – $212

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