Regrettably, the bulls failed to jump over the hurdle at $136 after an initial positive move. Expectations were high as to the overcoming of the initial hurdle which will enable ETH to rise above $140. This will eventually lead to the previous larger price range. The price action has taken another dimension. After failing to break above $136, the market dropped to $130 low. The price pulled back and retested the $132 twice before resuming a downward move.
The fact remains that the bears can retest the recent low at $117 if the selling pressure is unabated. Nonetheless, if the current price level holds, the bulls will make another trial at the $136 price level. Meanwhile, the coin is still battling with inadequate buyers at a lower price level.
Currently, the two bands of MACD are trending horizontally below the zero line indicating a sell signal but the price is in a sideways move. The price fails to break the 26-day EMA after an initial success over the 12-day EMA. ETH will resume a downward move if the price falls below the EMAs.
Key Supply Zones: $220, $240, $260
Key Demand Zones: $160, $140, $120
The failure of ETH to break above the EMAs is a setback. Earlier on the 26-day EMA acted as resistance to ETH, as it drops to the support of the 12-day EMA. Now if the 12-day EMA also breaks down, ETH will resume its downward move. This gives the bears’ an added advantage to push the price downward. We expect traders to adjust their parameters in case the downward move persists.
Disclaimer. This analysis and forecast are the personal opinions of the author 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.