Since November 24, Ethereum bulls have failed to break above $620 overhead resistance. Now, on December 7, there is overwhelming selling pressure above the $620 resistance which has compelled Ether to a range-bound movement.
On December 4, Ether fluctuated between $560 and $620 because of difficulty in penetrating the resistance level. The current price consolidation near the resistance is an indication of a possible breakout.
A breakout at the resistance will accelerate price movement on the upside. The biggest altcoin will rally to $800 if the bullish momentum is sustained. Meanwhile, the crypto is trading at $594 at the time of writing. The current price range will continue as long as the price momentum is sustained above $550.
Ethereum has fallen to level 51 of the Relative Strength Index period 14. This indicates that there is a balance between supply and Demand. The price bars are above the SMAs which is an indication of a further upward movement of the coin. Presently, 21-day SMA is acting as support for the crypto.
Key Resistance Zones: $220, $240, $260
Key Support Zones: $160, $140, $120
The biggest altcoin is range-bound as a result of overwhelming selling pressure. The Fibonacci tool has indicated an upward movement of the coin. However, the upward move will be short-lived. On December 1 uptrend, the coin was resisted but the retraced candle body tested the 78.6% Fibonacci retracement level. This indicates that the coin will rise and reverse at level 1.272 Fibonacci extension. That is the coin is reversing at the high of $681.82.
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.