Ethereum Loses Critical Support at $380, May Slump to $350 Low
Ethereum downward move is unavoidable as the biggest altcoin loses the $380 support level. The selling pressure was confirmed as sellers broke below the EMAs and retested the $380 resistance zone.
Ether has fallen to the $360 low and will continue the downtrend. Ether’s current position was as a result of buyers’ failure to break the $394 resistance.
Secondly, the bulls fail to defend the critical support at $380. For the biggest altcoin to recover from the current downtrend, the price must rebound above this level. On the downside, the current fall may extend to a $350 low. Meanwhile, ETH has fallen to $359 at the time of writing.
Ethereum indicator analysis
Ether price has broken below the EMAs which imply that the coin is falling. The price has also fallen below the resistance line of the descending channel. This indicates the termination of the uptrend. The price has fallen into the channel pending the resumption of the selling pressure. Nonetheless, ETH is at level 45 of the RSI index period 14. It means the market is in the downtrend zone and below the centerline 50.
Key Resistance Zones: $220, $240, $260
Key Support Zones: $160, $140, $120
What is the next direction for Ethereum?
The price action has indicated of Ethereum fall. On September 20 downtrend, a green candle body retraced and tested the 61.8% Fibonacci retracement level. It indicates that Ether will fall and reach the1.618 Fibonacci extension level. That is the market will reach a low of $350.
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.
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