Ethereum Is Holding Well Near Critical Support at $225, Setting up a Potential Relief Rally

Following the breakdown on June 24, buyers sustain hold on price between the $225 and $240 price levels. This is the range where price fluctuates to retest the $250 overhead resistance.

After the breakdown, the price corrected up to $235 high. Since then the market has been fluctuating between $227 and $235. A repeat price action of June 22 is likely to happen as the market continues its downward move to $227 support. 

A strong bounce above $227 will propel price to break through the resistance of $235, $248 and the momentum will extend to retest the $250 overhead resistance. On the upside, if the bulls fail to act, the current consolidation between $225 and $240 will continue for a couple of days. However, if the bears take advantage and break below $225 support, Ether may fall into further depreciation. Meanwhile, the price action is indicating a bearish signal.  

Ethereum indicator analysis 

As price breaks the support line of the ascending channel, Ether has fallen to $229. It is approaching the critical support at $225. A break below $225 support may result in a larger downside. The biggest altcoin is below the 50 % range of the daily stochastic. It indicates that the market is in a bearish momentum.

Key Resistance Zones: $220, $240, $260

Key Support Zones: $160, $140, $120

What is the next direction for Ethereum? 

A rebound is possible as bears approach the lows of $227 and $225 lows. The coin is also approaching the oversold region of the market. Therefore the downtrend may be short-lived as buyers are likely to emerge. Traders are to look out for a buy setup as the market approaches the oversold region.

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.