On September 1, buyers pushed ETH above the $480 price level but failed to continue the up trending. Buyers’ encountered resistance at the recent high as Ether fell from a high of $488 to $417 low.
The upside momentum will resume if price retraces and finds support above $400 or $425 support level. Today, Ethereum is trading at $434 at the time of writing. Buyers have resumed the upside momentum as the current support level holds. They will attempt to push prices above the $480 resistance.
Ether is likely to reach another target of $560 if the bulls are successful. The recent breakdown has subsided as price holds above $440 support. However, if the selling pressure continues and the $400 support is breached, ETH is likely to drop again to the previous low at $366. Nonetheless, buyers must defend the critical support levels for the continuity of the upside momentum.
The recent uptrend reached the overpriced region of the market. Sellers have emerged to push prices down. The biggest altcoin is below the 80% range of the daily stochastic. It indicates that the coin has bearish momentum. Nevertheless, the price action shows bearish signals. Interestingly, the price bars are above the EMAs which indicate a further upward movement of the coin.
Key Resistance Zones: $220, $240, $260
Key Support Zones: $160, $140, $120
As the selling pressure reaches bearish exhaustion, buyers have emerged to push prices upward. It is most likely that Ether will rise to retest the previous highs. The Fibonacci tool has indicated that price will rise as the candle body tested the 38.2% Fibonacci retracement. The 38.2 % retracement gives birth to a 2.618 extension. This is equivalent to the target price of $560 high.
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.