Ethereum fell to a low of $187, and rebounded on February 4. The rally lasted for four days as the bulls picked up momentum and broke the $197 resistance. The momentum extended to the high of $223. Nevertheless, if the bulls sustain the price above $223, the coin is likely to reach the high of $240. Unfortunately, Ether is facing some resistance at the recent high.
The $223 resistance is the former historical price level of September. In September, after the resistance, ETH fell to the low of $160. Ether fell in line with the prevailing trend. Today, ETH is in a bull market. On the downside, if price retraces and finds support at either $200 or $210, the upward move will continue.
Ethereum bounces to a higher price level. The Relative Strength Index has also risen to level 79. This indicates that Ether is in the overbought region. In that region, the uptrend is doubtful because buyers will not be on hand to propel ETH to a higher level. Ethereum is likely to face selling pressure. This is one reason Ether is currently facing resistance.
Key Resistance Zones: $220, $240, $260
Key Support Zones: $160, $140, $120
Ethereum has also made significant movement in terms of price attainment. Nonetheless, the coin has one hurdle to jump over to be out of the downtrend zone. Currently, it is facing some resistance because it is in the overbought region.
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.