Ethereum price analysis: ETH/USD drops like a stone, down 10% in recent 24 hours

Ethereum (ETH), the second largest coin with the current market capitalization of $27 billion, is changing hands at $248.00, down over 10% in recent 24 hours. An average daily trading volume is registered at $13 billion against $9 billion on Wednesday. The coin is most actively traded against BTC and USDT on Ethfinex and Bitfinex.

ETH/USD meet strong resistance on approach to $290. A thick layer of speculative sell-orders located on the approach to that handle triggered a sharp downside correction intensified by Bitcoin sell-off and global bearish move on the cryptocurrency market. As a result, ETH price dropped to $239.36 on Thursday. After a short-lived recovery towards the area above $250, the coin resumed the sell-off.

Looking technically, the price broke below the psychological $250.00 and came close to the middle line of 1-day Bollinger Band at $247.00 and an upside trendline from May 17 low ($223.90). This line stopped the sell-off on Thursday and, probably, will serve as a good starting point for another bull’s leg. Once it is cleared, the downside is likely to gain traction with the next focus on $200.00

On the upside, we will need to regain $250 handle to see a sustainable above $270 and get a chance to retest the recent high of $288. The mentioned resistance area is created by a confluence of technical indicators, including the middle line of 1-hour Bollinger Band, and a host of SMA (Simple Moving Averages).

ETH/USD, 1-day chart