Ethereum in a Fresh Decline, Accelerates Towards $200 Critical Support

Following the breakdown on June 2, Ether has been fluctuating in a tight range between $230 and $250 to retest the current resistance.

The market fluctuated for over a week as the bulls retested the $250 resistance. The selling pressure persists as ETH drops to $230 low. The price corrected upward as ETH traded below $240 resistance.

The upward correction does not produce any respite as buyers were repelled at the $240 resistance. The market is on a downward move as sellers broke below $230 support. It appears most of the altcoins are experiencing a downward move as bears take control of prices. Meanwhile, the market is falling and approaching the low of $220. Ethereum will find support above $200 if the $220 support fails to hold.

Ethereum indicator analysis 

Ether has fallen below the 40% range of the daily stochastic indicating that it is approaching the oversold region of the market. In the oversold region, the selling pressure is likely to be exhausted. The bears are attempting to break the support line of the ascending channel. A break below the support line will further depreciate the coin. 

Key Resistance Zones: $220, $240, $260

Key Support Zones: $160, $140, $120

What is the next direction for Ethereum? 

Ethereum is on a downward move as bulls fail to break the $240 and $250 resistance levels. The coin has dropped to $220 low and it is approaching the critical support level at $200. The current support is a historical price level in February, if broken it will push the price to the next support. 

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.