Ethereum Struggles above $400, May Continue to Defy Selling Pressure

Ethereum (ETH) reached the recent high of $440 but could not continue with the upside momentum.

After a minor retracement, buyers retested the recent high which resulted in the present price fall. Technically, a bearish double top has formed indicating that Ethereum will fall. Today, August 20, Ether is trading at $408 after falling to $396 low. 

Ethereum Price Long-Term Analysis: Bullish

There is a likelihood of a further downward move if the $400 support fails to hold. A break below the $400 support will push ETH to $370 low. Nonetheless, if the support holds and bounces, a retest of $440 resistance is possible. Eventually, if the $440 resistance is breached the market will rise to its target level of $480. Now, at the time of writing the price action is indicating bearish signals. 

Ethereum Indicator Analysis 

Ethereum is falling because it is below the 80% range of the daily stochastic. Sellers are pushing prices down because Ether has been trading in the overpriced region of the market. It is attempting to break below 12-day EMA, if it does, the downward move is unavoidable.

Key Resistance Zones: $220, $240, $260

Key Support Zones: $160, $140, $120

What Is the Next Direction for Ethereum?

The biggest altcoin is falling and may likely reach a low of $390. It has already fulfilled the target price of 1.272 ($440) Fibonacci extension level. The next level is the low of 78.6% ($390) Fibonacci retracement level. Ethereum will fall and reach that low before the resumption of uptrend

Disclaimer. This analysis and forecast are the personal opinions of the author and not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.