For the past two days, Ethereum’s upward move has been put on hold as ETH resumed retracement from the $290 resistance level. The pair has been overbought in the last two days as buyers were unavailable to push Ether upward. Sellers at the overbought region have pushed Ether to the low of $251.
In the interim, the price is fluctuating above $251. Nonetheless, if the selling pressure resumes, the ETH will find support at $235 and rebound from the low. The $235 is the recent breakout level point. Conversely, if the bulls fail to rebound, the bears may break below the breakout level.
As Ether is falling, the pair has reached level 65 of the RSI period 14. This means that Ether is above the centerline 50. The implication is that the pair is in the uptrend zone, notwithstanding the downward move. The price has fallen to the support of the 12-day EMA. The upward move will resume if the price bars remain above the EMAs. If the reverse is the case, the downtrend will resume.
Key Resistance Zones: $220, $240, $260
Key Support Zones: $160, $140, $120
Ethereum has dropped from the overhead resistance of $290 to a low of $246 at the time of writing. Expectantly, the pair may possibly rebound at the low of $220 or $233. The market will reach a high of $280 if the bulls resume upward move. Traders should look out for a buy setup at the end of the retracement.
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.