On January 18, 2021, Ethereum (ETH) price is rising above the $1,200 support level as it reaches a high of $1,248 at the time of writing.
Following its rejection on January 10, Ethereum has been in a downward correction. Since its fall from the high of $1,351, Ether has been fluctuating between $1,160 and $1,280. Ethereum price has been confined in this range as bulls fail to resume upside momentum.
Now ETH is making a downward move in the lower highs and lower lows pattern. The price levels are forming minor resistance levels as the market continues its downward move. On the upside, Ether bulls have to break the resistance levels of $1260, $1280, and $1,306 before breaking the overhead resistance at $1,351. On the downside, the market will slide down to $1,020, if the $1,160 support is breached.
The 21-day and 50-day SMAs are sloping upward indicating an uptrend. The 21-day SMA acts as a support level. The coin is at level 68 of the Relative Strength Index period 14. The RSI is approaching the overbought region which is above level 70. It is doubtful if there is any possible rally in the days ahead.
Key Resistance Zones: $1200, $1,300, $1,400
Key Support Zones: $800, $700, $600
Ethereum has high prospects of resuming an upside momentum. Since the biggest altcoin has been consolidating above the $1,000 support level, the Fibonacci tool analysis has remained the same. On January 9 uptrend; a retraced candle body tested the 61.8 % Fibonacci retracement level. This retracement indicates that ETH will rise to level 1.618 Fibonacci extension. That is, the crypto will reach a high of $1,833.54.
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 research before investing funds.