Ethereum Breakdown Finds Support But Can ETH Reclaim $240?

Ethereum is down more than 5% as it broke the $240 support against the US Dollar. ETH price found support near $220 and it is currently correcting higher towards key hurdles.

Ethereum failed to continue above $250 and it started a major decline.
The price dived below $240 and it even spiked below the $230 support zone.
There was a break below a major bullish trend line with support near $240 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could resume its decline if it fails to recover above the $240 pivot level.

Ethereum Price Turns Red
This week, Ethereum price followed a bullish path above the $220 pivot level. ETH price broke many key hurdles near the $240 and $250 levels. It even spiked above $250 resistance, but struggled to continue higher.
A high is formed near $253 and the price started a strong decline, following bitcoin’s sharp slide below $10,000. Ether price broke many key supports near the $240 level to move into a short term bearish zone.
Besides, there was a break below a major bullish trend line with support near $240 on the hourly chart of ETH/USD. The pair spiked below the $230 support and the 100 hourly simple moving average.
Ethereum Price
It tested the $220 support zone and a low is formed near $218. Ethereum is currently recovering nicely above the $230 level. It surpassed the 50% Fib retracement level of the recent drop from the $253 high to $218 low.
However, there is a major hurdle forming near the $240 level. It coincides with the 61.8% Fib retracement level of the recent drop from the $253 high to $218 low. A successful break above the $240 resistance is needed for a fresh increase. The main resistance on the upside is still near the $250 and $255 levels.
Uptrend Support for ETH
The first major support for Ethereum is near the $230 level. The main uptrend support is near the $220 level, which acted as a strong resistance in the past few days.
If the price fails to stay above the $220 support, there is a risk of a larger decline towards the $205 and $200 support levels in the near term.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is still well below the 50 level, with a negative bias.
Major Support Level – $230
Major Resistance Level – $240
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