Ethereum has been in a downward move for the past two days. Today, the crypto has fallen to the support above $1,020.
The price is now fluctuating above the $1,020 support as bulls and bears meditate about the next direction of the coin. The bottom line is that the support is a crucial level for Ethereum as the crypto resumes upside momentum.
The biggest altcoin will continue to decline if price breaks below this support. Meanwhile, the coin is consolidating above the current support for a possible upward move. Ethereum will rally above the $1,424 target price level of January $2018, once the $1,300 resistance is breached. Conversely, if the support level is not breached the upside momentum will be in jeopardy. Secondly, the market will continue to decline.
Ethereum indicator analysis
Ethereum has fallen to level 65 of the Relative Strength Index period 14. The crypto is in the uptrend zone and above the centerline 50. The price bars are above the SMAs despite the retracement. This suggests a further upward movement of the coin.
Key Resistance Zones: $1200, $1,300, $1,400
Key Support Zones: $800, $700, $600
What is the next direction for Ethereum?
The Fibonacci tool has indicated a further downward movement of the coin. Ether is hovering above the $1,000 support. On January 11 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. This retracement indicates that ETH will fall to level 1.272 Fibonacci extension. That is, Ether will reach a low of $930.24 and reverse.
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.
Source: Read Full Article