Ethereum Risks Further Selling Pressure After Rejection at $390

Yesterday, a possible rally above $390 was truncated as buyers were repelled because of selling pressure. Ether dropped to $360 low and resumed upward move immediately.

The breaking of the $390 resistance is what Ether needed to resume upside momentum. The price is trapped in the bearish trend zone.

Today, ETH has resumed a fresh uptrend as price reached a high of $370. The new uptrend is facing resistance at the recent high. There are indications that the coin will fall if it faces rejection at $370. The crypto will further decline after rejection at the $370 high if buyers fail to break it. It will fall to $350 low and gradually drop to $310.  

Ethereum indicator analysis 

The biggest altcoin is in an ascending channel. The price has broken below the EMAs indicating a downward movement of the coin. The selling pressure will increase if price breaks below the support line of the ascending channel. The coin is in a bullish momentum as it is above the 30% range of the daily stochastic.

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

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

What is the next direction for Ethereum?

After the recent decline, the coin is hovering above $360 support. A further upward move will defend upon the breaking of the $370 resistance. Ether has earlier risen to 1.272 Fibonacci extension level ( $390) and has retraced to 78.6 Fibonacci retracement level. The coin will continue a downward move if it fails to break the $370 high.

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.