Recently, Ethereum rebounded above $310 support as the bullish momentum dries up at the $360 high. For the past three days, buyers have been struggling to push the price above the minor resistances.
Each time price retests the minor resistances; ETH will fall to the support above $350 and pull back. The danger is that the biggest altcoin risks further downward movement if the bears break below $350 support.
This is because the market can easily fall to the support at $310 or even break below it. On the upside, if buyers break the current resistance and push the price above $390, Ether will be out of its downward correction. The crypto will also resume the upside momentum once the $390 resistance is cleared. Today, ETH has retraced to $356 low after the recent rejection. The altcoin risks may decline if the bulls fail to push the price to the upside.
Firstly, the price has broken above the resistance line of the descending channel. This indicates a further upward movement of the coin. Ethereum is in a bullish momentum as it is above the 50% range of the daily stochastic. The price bars are still below the EMAs which is a hindrance to the upward move.
Key Resistance Zones: $220, $240, $260
Key Support Zones: $160, $140, $120
The upward move is likely if the price breaks the minor resistance at $360. In the meantime, on September 24 uptrend; the retraced red candle body tested the 78.6% Fibonacci retracement level. This indicates that the market will rise and reach the 1.272 Fibonacci extension or $364.17 high. However, the altcoin may make a possible reversal.
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.