Despite its consolidation, Ethereum makes insignificant price movements. Yesterday, the market moved up but the marginal increase has been erased because of constant fluctuations. The price is unstable because of the appearance of small body candlesticks like the Doji and Spinning tops.
These candlesticks describe the indecision between buyers and sellers. However, the ETH has been trading near the resistance line of the channel but the price has failed to break the recent highs because of a lack of buying power.
The market falls each time it reaches close to the $197 price level. A break at $197 will propel the coin to reach a high of $220. However, each time the price fails to break the resistance, the coin will fall to a low at $180. Nevertheless, if the bears sink the price below $180, the coin will fall to a low at $160. The range-bound movement will resume the moment the support at $160 holds.
The 12-day EMA and the 26-day EMA are horizontally flat indicating that ETH is in a sideways move. The market is above the 40% range of the daily stochastic meaning that price is in bullish momentum. The resistance and support lines are yet to be broken meaning that Ethereum will continue its sideways movement.
Key Supply Zones: $280, $320, $360
Key Demand zones: $120, $80, $40
Ethereum may continue its sideways move as the market is yet to break out of the range-bound movement. Ethereum consolidation may be favorable for long term investors as the price is relatively stable. However, the price is not acceptable for short term investors who cannot profit from it.
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.