Ethereum Retraces to $380 Support for a Possible Bounce

Today, Ethereum has retraced to $380 low at the time of writing. The biggest altcoin has been retracing because of rejection at a high of $394.

At first, it retraced to $384, then resumed downward after retesting the $388 high. Yesterday, it fell to the $375 low and resumed to $384 high. Buyers are struggling to sustain a price above the $380 support. Fortunately, the price bars are above the EMAs which suggests that the market will continue to rise to retest the resistance zone. 

The resistance zone will be weakened after several retests. Eventually, when price breaks above the resistance, the price movement will be accelerated. Ethereum will rise and reach a high of $420. Conversely, if buyers fail to scale above the resistance, Ether will be compelled to a range-bound movement between $375 and $400.

Ethereum Indicator Analysis

The price has broken above the resistance line of the descending channel. It indicates that the price will continue the upward move to retest the resistance zone. Besides, the uptrend will continue as long as the price is above the EMAs. The coin is in a bullish momentum as it is above the 70% range of the daily stochastic.

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

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

What Is the Next Direction for Ethereum?

On the 4 –hour chart, Ether is in an upward move. On September 17 uptrend; the retraced candle body tested the 61.8% Fibonacci retracement level. This gives us the clue that ETH will rise to a high of 1.618 Fibonacci extension level or a high of $420. In the meantime, Ether is fluctuating below the $390 resistance.

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.