Recently, Ethereum made a sharp rally after breaking above the $235 resistance. The rally happens while ETH is in the overbought region. In the last 48 hours, ETH has risen from $270 to $290 and the coin is still overbought. In the interim, Ether is retracing after being resisted at the $290 price level.
Initially, at the support of $270, it was anticipated that the price was going to hit the $300 or $320 resistance. Now if price retraces to the low of $260 or $270, a rebound is likely to occur which will push ETH to high of $320. Ethereum has been in a strong momentum; therefore the upward move can still extend beyond $320. Conversely, if price retraces and breaks below the breakout level of $235, the downtrend may resume.
Ethereum is still trading above 80% of the daily stochastic. ETH has been trading in the overbought region since January 30. The strong bullish momentum is ongoing as we expect the price to rise higher. However, if the stochastic bands make a U-turn below the 80% range; it indicates that the momentum has turned bearish. The price is always above the EMAs signaling that the uptrend is ongoing.
Key Resistance Zones: $220, $240, $260
Key Support Zones: $160, $140, $120
Ethereum’s upward move is ongoing despite the retracement. Ether has made 77% gains from the bear market. The upward movement will resume as soon as ETH finds support. Nonetheless, the price has lingered in the overbought region. This has been responsible for the strong bullish momentum.
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.