Finally, the $200 support has been broken after a general breakdown of the cryptocurrency market. Ether was previously in a downward move when ETH was overbought at $227.
The market dropped after the overbought region to $195 low. An upward correction was made as the price action resulted in $220 and $210 resistances.
Nonetheless, in the recent breakdown, Ether dropped to $180, but the price corrected upward above $185. Perhaps the crypto will fall to $170 low if selling pressure resumes. Meanwhile, the price action is indicating a bearish signal. The bulls will be buying on dips if the buyers turn up above the support line of the channel. Incidentally, a rally above $220 is possible, if the momentum is sustained after buying from the dip. At the moment, a downward move is expected.
Since April 29, ETH has been above the 90% range of the daily stochastic. With the appearance of sellers, prices dropped as the indicator fell below a 40 % range. In other words, the market had bearish momentum. Similarly, the price action is indicating a bullish signal; the market is likely to have bearish momentum.
Key Resistance Zones: $220, $240, $260
Key Support Zones: $160, $140, $120
Ethereum is likely to be above the $200 support if the bulls are successful at buying from the dips. Conversely, if the selling pressure resumes and the $180 support cracks, the crypto will fall to another low of $170 or $150. Traders are to adjust their parameters below the current lows.
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.