Ethereum Swings to the Upside, Larger Uptrend Intact

Unfortunately, at the new high, Ethereum reached the overbought region, compelling sellers to emerge to push prices down. ETH has already retraced to $230 low and buyers are negotiating an upward move to retest the $250 resistance zone.

The current retracement has been terminated giving way for the bulls to take control of price. The biggest altcoin is currently trading above $240 support. On the upside, a rebound above $240 will propel price to break through the $250 resistance and rally above $260. The momentum can extend to a $280 overhead resistance level. Ethereum will be out of the bear market if the bulls are successful.

Ethereum indicator analysis 

Ethereum is now trading above the 80% range of the daily stochastic. The stochastic bands are horizontally flat above the 80% range indicating that the altcoin may perhaps be in a range-bound movement for a few days. However, the overbought condition may not hold in a trending market.

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

Key Support Zones: $160, $140, $120  

What is the next direction for Ethereum? 

The biggest altcoin has one more hurdle to jump over before the overhead resistance at $280. As Ether is in the overbought region above 80% range, the market is said to be in a strong bullish momentum. There is the possibility of a further upward movement of the coin.   

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.