Ethereum is under heavy downside pressure after the second-largest cryptocurrency by market capitalisation slumped towards the $190 level.
Ethereum price analysis shows that bullish MACD price divergence was created during the decline and extends towards the $235 level.
ETH/USD medium-term price trend
Ethereum has come under downside pressure alongside the broader cryptocurrency market, with the ETH/USD pair testing the $190 level.
Ethereum has a high-correlation with Bitcoin and this long-standing correlation appears to be playing out yet again.
Ethereum technical analysis shows that that the cryptocurrency remains technically bullish despite the latest decline.
Ethereum bulls continue to defend its key 200-day moving average, around the $180 level, keeping the ETH/USD pair’s medium-term bullish bias intact.
As long as this level is defended, the ETH/USD pair has a high probability of recovering towards the best levels of 2020 so far.
Gains above the pivotal $238 level would provide a strong indication that ETH/USD bulls intend to take the cryptocurrency much higher over the medium term.
ETH/USD short-term price trend
Ethereum technical analysis over the short term shows that the cryptocurrency has a strong chance of recovering back towards the $238 level.
Bullish MACD price divergence has built up during the recent decline across the 30-minute timeframe.
Conventional wisdom amongst technical analysts suggest the lower the timeframe that MACD price divergence is present the faster that it will be reversed.
The bullish MACD divergence extends towards the $238 level, which is the neckline of a huge inverted head-and-shoulders pattern on the lower timeframes, with substantial upside potential.
A recovery back towards the $238 level would provide a hint that a major technical bottom was formed earlier this week.
ETH/USD technical summary
Ethereum technical analysis indicates that the cryptocurrency remains technically bullish and could still stage a rally back towards the best level of 2020. Bullish MACD price divergence on the lower timeframes is also present.