Ethereum Consolidates, Holding Previous Market Structures

Ethereum's recent fall was a general breakdown in the cryptocurrency market. The bears broke below the price range of $236 and $244. The coin fell to $228 low as the price corrected above $232 high.

Presently, the market is consolidating above $232 support but the price action is indicating a bullish signal. When price breaks below the EMAs, a downward move is expected. A downward move to $224 support will ignite the price action of July 5. 

On July 5, Ether had earlier fallen to $224 support where the coin made a strong bounce. This move catapulted the coin to reach a high of $248. Understandably, the price action can repeat itself if the market falls again to that level. Technically, the market respects the historical price level. In the meantime, price is consolidating above $232 support.   

Ethereum indicator analysis 

The recent breakdown has pushed the coin below the EMAs. This suggests a further downward move if the crypto fails to rebound at the recent support. The coin is in bearish momentum as it is below the 60% range of the daily stochastic. The EMAs are still sloping horizontally because of the recent consolidation.

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

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

What is the next direction for Ethereum? 

The biggest altcoin is presently consolidating above the $232 support. The bears have the advantage over the bulls as the price is in the bearish trend zone. On the downside, the market may fall to $224 or $216, if the bulls fail to defend the current 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.