Ethereum (ETH) price analysis. October 8, 2020. Ether is on a downward move because the biggest altcoin fails to rebound above the $350 support.
The breaking of the $350 support signals the resumption of the downtrend. Similarly, if buyers succeed in pushing the price back above $350 high, the upside momentum will resume. In the meantime, ETH has fallen to $335 low and it is capable of further decline on the downside.
After the last break down, the price was corrected upward to a range-bound movement between $335 and $343. The crypto is now trading at $339 at the time of writing. On the downside, the coin will drop to $320 low if the current support cracks. Conversely, if the price breaks out at $343, a rally above $350 is possible. Ethereum will have another chance of rising to the previous highs. At the moment, the biggest altcoin is heading downward except the $320 support holds.
Ethereum has fallen to level 41 of the Relative Strength Index period 14. It indicates that the coin is in the downtrend zone and below the centerline 50. ETH price faces rejection at the 50-day SMA as the market resumes a downward move. The downtrend will persist as long as the price is below the SMAs.
Key Resistance Zones: $220, $240, $260
Key Support Zones: $160, $140, $120
From the price action, it appears the downward move may persist. During the October 2 downtrend, the coin fell and found support above $335. The retraced candle body tested the 50% Fibonacci retracement level. Now this explains that Ethereum may continue a downward move to level 2.0 Fibonacci extensions. In other words, Ether will fall to the low at $300.
Disclaimer. This analysis and forecast are the personal opinions of the author and 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.