Ethereum Is Looking Overpriced, May Revisit $420 High

Yesterday, Ether retraced to $360 low after failing to break above $400 high. Today, the price is fluctuating above the $370 high.

However, the uptrend is becoming increasingly difficult soon after the price fell to $360 low. In the first instance, the coin traded below the resistance of $400 for over five days as buyers fail to push ETH above the resistance.

In the second instance, the biggest altcoin rebounded on August 5 but was repelled. This resulted in the second decline. Today, Ether risks further decline. Nevertheless, if the $370 support cracks, Ethereum will revisit the low of $330. Alternatively, if there is a strong bounce above $370, the market will rise to $420 high.

Ethereum indicator analysis 

Ethereum is currently retracing from the $400 resistance. On the downside, if the price breaks and closes below the support line, there is a likelihood of further selling pressure. The market will move up if the support line holds. Today, the market is falling above the EMAs. It indicates that the bullish trend is intact.

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

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

What is the next direction for Ethereum?

Ethereum is falling and trading above $370, at the time of writing. On August 2, a red candle body tested the 0.786 Fibonacci retracement level. Ether is likely to rise to the 1.272 Fibonacci extension level. This will be at the $415 price level. Thereafter, the price will reverse to the 0.786 retracement level.

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.