Ethereum Faces Rejection at $670, Resumes Downward Move

Following its impressive runs in the last 48 hours, Ethereum faces rejection at the $680 resistance zone. The rejection was caused by a long wick on the daily candlestick which indicates strong selling pressure at a higher price level.

After the rejection, the crypto has been fluctuating between $620 and $670 for a possible resumption of the upward move but the bears took charge as the $620 support was broken. 

On the downside, the current decline will extend to the low of either $580 or $540. If Ether finds support above those support levels, then an upward move will resume. Otherwise, the downtrend will continue. On the upside, the bulls failed to break the minor resistance at $670. Hence the downward move. A breakout at $670 would have seen Ether attaining a new high of $838. 

Ethereum indicator analysis

Ethereum is falling after the recent rejection. If the price breaks below the 21-day SMA, the downtrend will continue. The crypto is below the 80% range of the daily stochastic. It indicates that Ether has bearish momentum. The coin is likely to fall.

Key Resistance Zones: $800, $820, $840

Key Support Zones: $440, $420, $400

What is the next direction for Ethereum? 

The $620 support has been broken. There is the tendency for a downward movement of the coin. On December 20 downtrend; a retraced candle body tested the 38.2% Fibonacci retracement level. This retracement indicates that ETH will fall and reach level 2. 618 Fibonacci extension. That is Ethereum will reach a low of $562.81.

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 research before investing funds.

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