For the past two weeks, Ether has been consolidating between $225 and $240 to revisit the previous peak price. Buyers were able to break the $240 resistance but were overwhelmed at the $248 resistance.
This shows that the bears were well fortified at the $250 overhead resistance. The current upward move by buyers resulted in a bearish reaction. The biggest altcoin is now facing a breakdown. Ethereum fell to $232 low, and the price corrected upward to retest the $236 high.
This resulted in a further downtrend as the market approached the $228 low. The coin can resume a fresh uptrend if the current support holds. The bulls can break the $248 resistance if the coin rebounds above the current support. When buyers are successful above the $248 resistance, price movement will accelerate to the $253 overhead resistance. Nonetheless, if the current support at $228 cracks, the downtrend will resume.
Ethereum has been trading within the ascending channel sometimes ago. The recent breakdown has resulted in price breaking the support line of the ascending channel. As price closed below the support line the downtrend may persist, except the price action indicates otherwise. ETH is below the 60 % range of the daily stochastic. It indicates that the market is in a bearish momentum.
Key Resistance Zones: $220, $240, $260
Key Support Zones: $160, $140, $120
The recent breakdown has threatened the current uptrend. The breaking of the support line may cause further depreciation of the coin. Besides, the selling pressure will persist if the bears succeed in breaking below the EMAs. The coin will be in the bearish trend zone if ETH is below the EMAs.
Disclaimer. This analysis and forecast are the personal opinions of the author that 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.