Ethereum Retraces to $200 Support, Struggles to Resume Fresh Uptrend

Ethereum bulls have successfully defended the $200 critical support level. After its recent rebound on April 29, the crypto has been on a downtrend.

The attempts made by buyers to retest the previous highs were fruitless as Ether suffered further selling pressure at $220 and $210. As bulls approach the $200 critical support, buyers bounce at the support but were repelled twice at $210 resistance. The critical support is holding as ETH trades above the support.  

Certainly, the possibility of resuming a new uptrend is likely as ETH holds above $200. Like in the previous instances, a rebound above $ 200 can break through the resistances of $210, $220, and $227. The momentum can extend to $250 resistance. On the downside, we should not ignore the fact that a breakdown can occur if the bulls failed to rise. Ethereum is above $200 support at the time of writing.  

Ethereum Indicator Analysis 

The crypto has been falling because Ether reached the overbought region of the $227 price level. Ether is below the 60% range of the daily stochastic. The market has bearish momentum. Presently, the price action is indicating a bullish signal as the $200 support is holding.

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

Key Support Zones: $160, $140, $120 

What Is the Next Direction for Ethereum? 

After the last bearish move, Ethereum dropped to $198 low but it is above $200. The market is still trading beneath $210 resistance. Any possible move will be determined by the breaking of the resistance at $210. A break above $210 will compel price to retest the previous higher levels. ETH will drop to $180 or $160 low if buyers fail to break $210 resistance.

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.