Yesterday, Ethereum rebounded and broke the $200 resistance. Unfortunately, the upward move was unimpressive as bulls were repelled. The market is retracing and may find support above $200.
Presently, if the $200 support cracks, Ether will drop to $160 low. The downward move may be worsening as ETH is in the overbought region. The presence of sellers is unavoidable. This may also contribute to the downward movement of prices. Positively, if the $200 support holds, ETH will rise again to retest the minor resistance at $225. The crypto will continue its upward move if the minor resistance is breached.
The biggest altcoin is above the 90% range of the daily stochastic. The coin is trading in the overbought region. There is a bearish signal as the stochastic bands are making a U-turn pointing downward. It appears the bullish momentum is dying down.
Key Resistance Zones: $220, $240, $260
Key Support Zones: $160, $140, $120
Ethereum's recent upward move is being erased as the price continues its retracement. The downward move may not subside because it has emerged in the overbought region. It is expected for the bulls to defend the current support at $200 for a subsequent upward move.
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.