Ethereum rebounded twice to breach the $232 and $240 resistance levels. Unfortunately, the momentum was insufficient to push ETH above $248 high.
The biggest altcoin is retracing from the $250 resistance zone because of the presence of sellers. Before now there was intense price tussle between bulls and bears for over a week between $224 and $232 price levels.
The bulls overwhelmed the bears as price broke the upper price range and rallied to $248 high. The bulls are regrouping after a minor retracement. On the upside, a strong bounce above $244 will propel price to break the $248 and $253 resistance levels. The momentum will extend to $288 high if the bulls are successful. However, if buyers fail to break the resistance levels, Ether will be compelled to a range-bound movement between $230 and $250 price levels.
Ethereum indicator analysis
Ethereum has shown signs of strength as price breaks above the EMAs. The market will continue to rise as long as price is above the EMAs. However, if the bears break below the EMAs, it will weaken the upward move. Presently, price is retracing because ETH has reached the overbought region of the market. The market is above 80% range of the daily stochastic.
Key Resistance Zones: $220, $240, $260
Key Support Zones: $160, $140, $120
What is the next direction for Ethereum?
Ethereum has broken the minor resistance as bulls are faced with two hurdles to jump over. Presently, the coin is in the overbought region, as sellers push price down. An upward movement is expected after the retracement. The king coin will rally above $280 if the current resistance is breached.
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.