After one month of price tussle between bulls and bears, Ethereum bulls have broken the $227 overhead resistance.
The acceleration of price movement was made possible after Ether rebounded thrice at the low of $196. This bullish action broke the resistance levels of $204, $210, $215, and the overhead resistance at $227. Certainly, as the bulls are successful, the biggest altcoin will revisit the previous highs of $230 and $240.
This is on the backdrop of buyers sustaining the current momentum. Yesterday, after the initial retest at $227 resistance, there was a price correction to the low of $220. Today, at a low of $220, a second attempt is made at the overhead resistance. A rally above $230 is expected as the bulls are successful. On the other hand, ETH will be compelled to a range-bound movement if it fails to sustain the upward move.
With the recent breaching of the resistance levels, Ether is now above the 80% range of the daily stochastic. This implies that the crypto is now in the overbought region. In the overbought region, sellers are likely to emerge to push prices down. However, in a trending market, an overbought or oversold condition may not hold. The uptrend will continue as long as price is above the EMAs.
Key Resistance Zones: $220, $240, $260
Key Support Zones: $160, $140, $120
Finally, Ether has recovered from the downward correction. At the time of writing the bulls have broken the $227 overhead resistance. After overcoming this resistance, the momentum is likely to extend to a high of $260. However, as the market is reaching the overbought region, ETH is likely to face resistance shortly.
Disclaimer. This analysis and forecast are the personal opinions of the author that 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.