Today, ETH is trading at $389 as the market continues its fluctuation below the $400 resistance. Buyers have been unable to break the current resistance because of some factors.
The altcoins are correlated in the cryptocurrency markets. The general breakdown on August 11 affected most of the coins. Besides the price momentum is yet to pick up after the breakdown.
On the upside, a strong bounce above the current support will propel the price to break the $400 resistance. ETH will have an accelerated movement to the previous highs. The current momentum will pick up above $420 as the price continues to reach the target price at $520. Nonetheless, the biggest altcoin may continue the range-bound movement below the resistance if it fails to breach the resistance.
Ethereum is trading in an ascending channel. The market tends to rise if price breaks and closes above the resistance line of the ascending channel. Similarly, ETH will fall if the price breaks and closes below the support line. In the interim, the price is above the EMAs and trading within the channel.
Key Resistance Zones: $220, $240, $260
Key Support Zones: $160, $140, $120
On the 4 –hour chart, Ethereum is fluctuating below the $400 resistance. Despite the recent break down the uptrend is still intact. On the August 2 uptrend, a red candle body tested the 0.382 Fibonacci retracement level. This gives us a clue about the next direction of price. Ether will rise to 2.618 Fibonacci extension level at $520 high.
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.