Ethereum's upward move has been compelled to a sideways move because of the bulls’ inability to overcome the $620 overhead resistance. Ethereum bulls have retested the overhead resistance twice and have failed to breach the overhead resistance.
The biggest altcoin is fluctuating between $580 and $620. The December 1’s candlestick has a long wick. It indicates that there is strong selling pressure at higher levels.
Similarly, another candlestick on the same date has a long tail. The long tail indicates that there is strong buying pressure at lower levels of price. This will compel Ether to be range-bound between the lower price range and the higher price range. When crypto is range-bound, there is a possibility of a breakout and breakdown. When a breakout occurs at $620, the coin will rise and revisit the April 30, 2018 price level of $838. A break below $580 will cause the coin to decline to $483 or $390.
Ether is at level 65 of the Relative Strength index period 14. It indicates that the coin is in the uptrend zone and above the centerline 50. The 21-day and 50-day SMA are sloping upward indicating the uptrend. However, the 21-day SMA acts as support in the bull market.
Key Resistance Zones: $440, $460, $480
Key Support Zones: $160, $140, $120
Ethereum's upward move is likely if the bulls break the overhead resistance. Meanwhile, the Fibonacci tool indicated an upward movement of the coin. On November 25, a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that ETH will rise and reach level 2.0 Fibonacci extension. That is the high of $809.83
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 research before investing funds.