Over the weekend, on May 10, Ethereum suffered a breakdown from its recent high of $210. The market made a sharp drop to $180 low. After the breakdown, the crypto went into three days of consolidation above $180.
Interestingly, Ether’s bulls bought from the dip as the market jumped up to a high of $201. The recent move was insufficient to break above the support line of the ascending channel. Nonetheless, the upward move is facing resistance at $200. A possible downward move is likely to resume as the bulls fail to move up. The bears may push the biggest altcoins to $176 low.
The bulls failed to push above the support line of the ascending channel. Ethereum would have resumed its upward move if the price had broken and closed above the support line. Presently, ETH is above the 20% range of the daily stochastic, indicating that it has bullish momentum.
Key Resistance Zones: $220, $240, $260
Key Support Zones: $160, $140, $120
Ethereum is not presently out of the downtrend. The crypto is falling after failing to secure an upward move. The price is retracing and if it breaks below $180, the downtrend will extend to $176 low. On the other hand, if the bulls prove stiff resistance at $180 support line, the market will move up.
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.