For over a week, Ethereum has been on a downward move. This current downtrend was caused by the bull’s inability to push ETH above the $420 resistance level.
Yesterday, sellers pushed the biggest altcoin to the low at $374 but the price corrected upward above the $380 support. The bears and the bulls appear to battle with the price above the critical support at $380.
This critical support will determine the direction of price movement. The market will continue to trend on the downside if the bears break the support at $380. There is a possibility of a further decline to the low at $340. Conversely, if the bulls defend the critical support, Ether will rise and retest the $420 overhead resistance. Meanwhile, the coin is trading at $390 at the time of writing.
Ethereum indicator analysis
The bearish trend has broken below the 21-day SMA. Nevertheless, a break below the SMAs will trigger the downward movement of prices. The crypto is below the 40% range of the daily stochastic. It indicates that the coin is in a bearish momentum.
Key Resistance Zones: $220, $240, $260
Key Support Zones: $160, $140, $120
What is the next direction for Ethereum?
Ethereum downward move has extended to the critical support level. According to the Fibonacci tool analysis, Ether may further decline beyond $380 if the price level is breached. On October 12 uptrend; a retraced candle body tested the 61.8% Fibonacci retracement level. This indicates that the coin will rise to level 1.618 Fibonacci extensions or $433.52 high.
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.