Ethereum bulls have been struggling to sustain price above the $350 support for the past two days. The downward movement will be stalled if price is sustained above $350 support.
Besides, the coin trades marginally above that support level. Yesterday, the coin rebounded to a high of $354 but has retraced to the current support above $350. On the upside, a strong bounce above the current support will propel price to break the resistance line of the descending channel.
It is possible the momentum will extend to retest or break above the $390 resistance. If price breaks above the $390 support and the momentum is sustained, the upside momentum will resume. Nevertheless, if the coin fails to rebound there is a likelihood of price sliding below the $350 support. Meanwhile, the coin is still fluctuating above the $350 support
Ethereum is at level 51 of the Relative Strength Index period 14. It also indicates that there is a balance between supply and demand. The price is also in the bearish trend zone as it faces rejection at the 12-day EMA. As already indicated if price breaks and closes above the resistance line; it will signal the resumption of an upward move.
Key Resistance Zones: $220, $240, $260
Key Support Zones: $160, $140, $120
The downtrend will resume if price breaks the support at the $335 price level. In other words, in October 2 downtrend; a retraced candle body tested the 61.8 % Fibonacci retracement level. It indicates that Ethereum will fall and reach a low of 1.618 Fibonacci retracement level. That is low of $312.11
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.