Ethereum Risks a Further Downward Move If $380 Support Cracks
Ethereum has begun to fall after retesting the $390 high. Sellers have earlier broken the $400 crucial support level as the price dropped to $370 low.
Buyers attempted to push the price upward but were repelled at $390 high. Today, Ether is falling towards the $380 support. The market will resume upward if the $380 support holds.
However, there are indications that the selling pressure will resume once the current support is breached. The market will fall and find support at the $350 low. The support at $350 is the previous resistance of July 31. On July 31, buyers broke the resistance as price rallied to $$400 high. Perhaps, if the coin finds support at such low a fresh uptrend will resume. Meanwhile, Ethereum has fallen to $381 at the time of writing.
Ethereum indicator analysis
Sellers have already broken below the EMAs as the price continues its downward move. The broken support line and the EMAs have confirmed the downward movement of the coin. Ether is below the 20% range of the daily stochastic. It indicates that the coin is in a strong bearish momentum as it reaches the oversold region.
Key Resistance Zones: $220, $240, $260
Key Support Zones: $160, $140, $120
What is the next direction for Ethereum?
Since the crucial support level at $400 was broken, the market has continued to trend lower. According to the Fibonacci tool, the biggest altcoin is likely to fall. On August 22 downtrend, the coin fell to $380 low and resumed upward. A green candle tested the 61.8 % Fibonacci retracement level. This indicates that the downtrend will extend to a low of $350.
Disclaimer. This analysis and forecast are the personal opinions of the author and 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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