Ethereum could be due for a strong downside correction as the second-largest cryptocurrency meets strong resistance from the $240.00 level.
Ethereum price analysis shows that bearish MACD price divergence is warning of a pullback towards the $195.00 level.
ETH/USD medium-term price trend
The recent gains in Ethereum have started to slow as the cryptocurrency meets strong resistance from the $240.00 technical barrier.
The altcoin space also appears ripe for a technical pullback, which also plays into the theory that ETH/USD could head lower before moving higher again.
Ethereum technical analysis shows that bearish MACD price divergence is present until the $195.00 level.
Sellers may need further technical confirmation before the expected pullback takes place, due to the strength of the recent rally.
Traders may wait for a series of lower weekly highs to form before increasing bearish bets towards the ETH/USD pair.
Watch out for repeated technical failure below the $240.00 level to confirm the coming correction.
ETH/USD short-term price trend
Ethereum technical analysis over the short term shows that a bearish reversal pattern may be forming.
A head and shoulders pattern is starting to develop across the lower time frames, as ETH/USD bulls fail to move above the $230.00 level.
The neckline of the bearish pattern is located around the $212.00 level, with the downside projection of the pattern around $18.00.
It is also noteworthy that the recent advance has created pockets of untested demand around the $190.00 level.
ETH/USD technical summary
Ethereum technical analysis suggests that a technical correction towards the $195.00 level may be on the horizon. The recent bullish up move should resume once the pullback occurs.
