Yesterday, ETH moved up to $192 but pulled back. At other times, the price will reach the $195 resistance level and retrace back to the $180 support level. This has been the scenario in October. Ethereum is facing price rejection at a higher price level because of a lack of buying power.
Nevertheless, if the $180 support level is breached, ETH will drop to the $160 support level. The 160 support level is the critical support level that had been holding since April. When price rebounds at the critical support level, Ethereum will resume its range-bound movement for a few more days.
In the last three months, the horizontal channel is yet to be broken as the coin continues to trade within it. The first attempt was in September, when the coin made a false breakout. In September, the price broke the resistance level but was resisted at $220. The price dropped to a low of $160 and rebounded. There are more sellers than buyers at the upper price levels which have been responsible for the sideways trend.
Key Supply Zones: $280, $320, $360
Key Demand zones: $120, $80, $40
The ETH/USD pair may maintain its sideways move as long as the coin trades between $160 and $200. Lately, the bulls have been aggressive at the upper price level but are facing more selling pressure. However, if more buyers are introduced, the resistance level will be broken and the price will rally to $235.
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.