Surprisingly, Ethereum dropped to $152 low after a sharp move to a high of $175. About 48 hours ago, ETH rebounded at $140 low to reach a high of $175.
Buyers made three unsuccessful attempts to break the $175 resistance but to no avail. Buyers resisted as the price fell to $152 low. In other words, ETH fell to the support of the EMAs.
In the meantime, the support is holding, as the market shows some bullish signals. An uptrend cannot be ruled out if the current support holds. A repeat of April 6 rebound, may occur above the current support. On the upside, if ETH rebounds, the price will revert back to $175 resistance. Ethereum can move up to the high of $225 if the $175 resistance is breached.
Ethereum Indicator Analysis
The current downward move was as a result of ETH reaching the overbought region of the market. Ether is above 80% range of the daily stochastic when the market reached a high of $175. Thereafter sellers appeared to push prices downward. Meanwhile, the bearish momentum is exhausted. The price action is showing some bullish signals.
Key Resistance Zones: $220, $240, $260
Key Support Zones: $160, $140, $120
What Is the Next Direction for Ethereum?
Ether is likely to resume a fresh upward move above if the support at $152 holds. Besides, the uptrend is likely, as price breaks above the resistance line. This indicates a change in the trend. In other words, ETH will resume its upward move.
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.