Surprisingly, after impressive moves to a high of $246 on March 7, Ether has dropped to a low of $147. The initial fall was to a low of $200. After three days of consolidation above $200, the bears took the initiative to continue the selling pressure. The market has reached a low of $147. There is a likelihood that the fall will extend to a low of $125.
Nevertheless, at $147, ETH has already fallen into the oversold region. The implication is that further selling is doubtful as the market reaches the oversold region. However, if the current support holds, the upward move will resume. On the other hand, if the support fails to hold, ETH will fall either to the low of $125.
The recent fall from $246 to $147 resulted in the coin falling into the oversold. At this point in time, we expect selling pressure to have waned down. The emergence of buyers at the oversold region to push Ether upward is being expected. The EMAs are sloping southward indicating the downtrend.
Key Resistance Zones: $220, $240, $260
Key Support Zones: $160, $140, $120
Ethereum's surprise drop has caused it to fall into the downtrend zone. At the current price level of $147, the support must hold, if not the downward move will extend to the low of $125. Traders have to abstain from trade initiation as the candlestick is yet to close at the time of writing. They are to look out to buy sets and set up their parameters.
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.