Ethereum Price Analysis: ETH/USD may retest $200.00 before the recovery is resumed

ETH/USD experienced a sharp sell-off triggered by technical factors.
The coin may retest $200.00 before the buyers return to the market.

The second-largest digital asset resumed the decline and dropped from $210 to $206.00 in a matter of an hour. At the time of writing, ETH/USD is changing hands at $206.30. Despite the sell-off the price has stayed mostly unchanged both on a day-to-day basis and since the beginning of Sunday. The short-term trend is bearish, while the volatility is growing.

ETH/USD: Technical picture

On the intraday chart, ETH broke below above 1-hour SMA100 (currently at $206.50) and tested the lower line of the 1-hour Bollinger Band at $205.80. This development is a negative technical signal in the short run. If the price fails to regain ground we may see a follow-through towards psychological $200.00, which is reinforced by 4-hour SMA200. This barrier is likely t attract new buyers to the market; however, a move below this area will worsen the technical picture and bring more sellers back to the market. They will target at the recent low of $191.49 and the daily SMA100 below $190.00.

Meanwhile, the RSI on an intraday chart is reversing to the upside, which means the sell-off may be limited and the coin may continue moving upwards in the nearest hours.

On the upside, the initial resistance is created by a combination of 1-hour SMA50 and SMA200 at $207.50. If it is broken, the recovery may be extended towards $210.00 and $215.00

ETH/USD 1-hour chart

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