Undeniably, the downward move has become unavoidable as the coin continues to fall. The bulls have made two unsuccessful attempts at the $135 supply zone. After the first attempt, the ETH found support at $127.50 price level but the coin moved up for a second retest. The second retest was repelled as the coin fell to a low of $125.
The downtrend may revisit the December 18 low of $120. It is anticipated that a break below $120 will result in the resumption of the downtrend. A successful breakdown will push Ethereum to a low of $100. We should keep our fingers crossed to see whether the $120 demand zone is going to hold. If the demand zone does hold, then Ethereum will resume its upward move.
The RSI period 14 level 33 indicates that the market has come close to the oversold region. Probably, we are reaching the point where selling will be overdone and suggesting bulls to take control of the price. The blue line EMA is resistance to Ethereum as it trades below it. Incidentally, the coin will suddenly rise if it breaks above the EMAs.
Key Supply Zones: $220, $240, $260
Key Demand Zones: $160, $140, $120
Ethereum plunged to its current lowof $120 on December 18. For the past one week, the bulls were yet to trade above $135 resistance level. The bull’s failure has led the coin to fall and revisit its current low. At the moment, Ethereum is fluctuating between the levels of $120 and $135. We are waiting on the downward move to continue. It is not clear whether the downtrend will resume at $120 low or the price fluctuation will continue.
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.