Ethereum slumped to $860 low and pulled back after rejection from the $1,100 resistance zone. The biggest altcoin is trading at $976.60 after the breakdown.
However, there is a likelihood of further downward move. Since December 30, the upward was stalled at the $760 resistance level. The bulls broke the resistance after three days of correction.
This breakout catapulted the coin to rally to $1,159.40 and pulled back. Today, Ether has broken its previous price level of $838 in April 2018. The next attempt is to break the $1,424 January 2018 historical price level. Ether is currently correcting upward, if it faces rejection, the downtrend will resume again.
Ethereum indicator analysis
The crypto is above the 80% range of the daily stochastic. It indicates that the coin is in the bullish trend zone. Today, there is the appearance of a Doji candlestick with a long tail and a short tail. It means that there is equality and indecision between buyers and sellers as no one is in control. The candlestick indicates a possible reversal of the coin.
Key Resistance Zones: $800, $820, $840
Key Support Zones: $440, $420, $400
What is the next direction for Ethereum?
The biggest altcoin will continue its downward move if the coin faces rejection at the recent high. On January uptrend, a retraced candle body tested the 61.8% Fibonacci retracement level. This retracement indicates that ETH will rise to level 1.618 Fibonacci extension. That is the crypto will reach a high of $1,427.83
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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