For the past four days, Ethereum has been hovering between $220 and $230.Expectantly, the much-awaited breakout occurred as the price pulled through the $230 resistance and reached a high of $270. Ether is out of the downtrend zone as it breaks above $235 price level.
The coin has reached a high of $270, after crossing this minor resistance; we expect the price to reach a high of $300. However, the current price of $270 is the same price level in July 2019. In July, the market was fluctuating but the price eventually followed the prevailing trend. ETH will be compelled to move sideways if the bulls fail to cross above it.
The current breakout has pushed Ethereum to shoot up to $270. In the same vein, Ether has reached level 87 of the RSI period 14. The pair is now trading in the overbought region. The implication is that ETH stands the chance of falling. However, in a strong bullish move, the overbought region may linger for some time. In the overbought region, sellers take control of price to push ETH downward.
Key Resistance Zones: $220, $240, $260
Key Support Zones: $160, $140, $120
Ethereum has moved out of the downtrend zone and we expect it to reach the $300 price level. It is currently facing resistance at the $270 price level. The pair may retrace as a result of the current resistance. Besides, Ether is in the overbought region as sellers may emerge to push ETH downward. It is unclear how long the price will linger in the overbought region before the downward move.
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.