Ethereum (ETH) price analysis, October 29, 2020. The biggest altcoin is on a downward move after its rejection at the $420 resistance.
Buyers fail to push ETH above the $420 resistance zone. The resistance level has not been broken since August. Nonetheless, Ether has fallen and found support above $380. For the past four days, the crypto has been fluctuating above the critical support at $380. Perhaps, if Ether bounces above the $380 support, the $420 resistance zone will be cleared.
The momentum is likely to extend to the previous high above $475. From every indication, the downtrend is likely to continue. This is because after hovering above $380 support, the price was corrected upward to retest the $410 high. Thereafter, the selling pressure has resumed again. The bottom line is that if price breaks below $380, the downtrend will be unavoidable. The selling pressure is likely to extend to the $320 low.
The current price has fallen above the 21-day SMA support. The downtrend will continue if price breaks below the SMAs. The crypto is at level 51 of the Relative Strength Index period 14. This indicates that there is a balance between supply and demand.
Key Resistance Zones: $220, $240, $260
Key Support Zones: $160, $140, $120
The current selling pressure is at a point of breaking below the $380 support and the simple moving averages. On October 26 downtrend; the retraced candle body tested the 38.2% Fibonacci retracement level. This indicates that the market will drop to level 2.618 Fibonacci extensions or $320.59.
Disclaimer. This analysis and forecast are the personal opinions of the author are 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.