Ethereum May Pull back as Price Deepens to the Oversold Region

Ethereum drops to the support at $140 as bulls and bears tussle over the price. The pair reaches the oversold region as selling continues.

Ethereum has dropped again to a critical support level at $140. This level has not been broken since March. However, as the bears succeeded in breaking the previous low in September, the downtrend has resumed. The price has already breached the demand zone at $140, indicating that sellers are still in control. Nevertheless, if the bulls make a pullback, we should expect ETH to nosedive to a low of $120. Ethereum lacks buyers at the demand zones to hold the coin from further depreciation.

Ethereum Indicator Analysis 

The coin has reached level 24 of the daily Relative Strength Index period 14. The selling pressure is gradually being exhausted as the bulls get ready to take control of the price. The EMAs are sloping downward indicating the price fall.

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

Key Demand zones: $160, $140, $120

What Is the Next Direction for Ethereum? 

The pair is showing signs of another fall to a low of $120 if the support at $140 cracks. The next support was the previous low in February where the market had a turning point. Nevertheless, if the bears conquer the current price level, Ethereum will fall.

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.