Ethereum Watch

Ethereum is down close to 10% and it broke the key $255 support area against the US Dollar. ETH price might continue to slide, but the $230 and $225 levels are likely to provide support.Ethereum is declining heavily and it recently broke the $255 and $250 support levels against the US Dollar.The price is now trading near the $235 level, with key supports near the $230 area.There was a break below a major descending channel with support at $253 on the hourly chart of ETH/USD (data feed via Kraken).Bitcoin price is also sliding and it traded below the $9,250 support area.Ethereum Price Turns RedYesterday, we saw a few bearish signs for Ethereum after it broke the $265 support against the US Dollar. As a result, there was a sharp decline in ETH price below the $255 support area and the 100 hourly simple moving average.The decline was such that the price declined below the $250 and $248 support levels. Moreover, there was a break below a major descending channel with support at $253 on the hourly chart of ETH/USD.Ethereum PriceIt opened the doors for more losses below $245. Ethereum is down close to 10% and it traded close to the $235 level. A new weekly low is formed near $236 and the price is currently consolidating losses.An initial resistance on the upside is near the $242 level. It coincides with the 23.6% Fib retracement level of the recent drop from the $264 high to $236 low. Above $242, there are a couple of important hurdles near the $248 and $250 levels.The main resistance is now near the $250 level since it is close to the 50% Fib retracement level of the recent drop from the $264 high to $236 low. Therefore, the price must climb above the $248 and $250 resistance levels to start a fresh increase in the near term.More Losses?On the downside, an initial support is seen near the $235 area. The first major support is near the $230 area, where Ethereum bulls are likely to emerge.If there are more losses below the $230 support, the next target for the bears could be $220 in the coming sessions.Technical IndicatorsHourly MACD – The MACD for ETH/USD is now gaining strength in the bearish zone.Hourly RSI – The RSI for ETH/USD is now well below the 40 level, with a bearish angle.Major Support Level – $230Major Resistance Level – $250