Yesterday, Ethereum retraced to $420 and rebounded to reach a high of $440. Today, after retesting the $440 high, Ethereum resumed a downward move to retest the $420 low.
There is a price tussle between bulls and bears above the current support. There is the likelihood of a further price fall, once the $420 support cracks. Ether will drop to $380 low.
Alternatively, if the current support holds, the uptrend will resume retesting the $440 resistance. The biggest altcoin will have another chance to rise to $500 if buyers break the $440 resistance. Today, ETH is hovering above the $420 support as buyers and sellers are undecided about the direction of the market.
Ethereum price is retracing downward, and if it breaks and closes below the support line, the coin may resume a downward move. Otherwise, the uptrend will resume. Ether is also trading in the overpriced region above the 80% range of daily stochastic. The bands are pointing downward indicating the recent downward move.
Key Resistance Zones: $220, $240, $260
Key Support Zones: $160, $140, $120
The biggest altcoin is retracing to the next support. However, in the August 2 uptrend, a bearish candlestick (red candle body) tested the 0.50 Fibonacci retracement level. This retracement candle indicates that the market will rise and reach level 2.0 Fibonacci extension level. That is, Ether will reach a high of $500.
Disclaimer. This analysis and forecast are the personal opinions of the author and 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.