Surprisingly, Ether fails to move to retest $227 overhead resistance, despite its ability to break the $200 and $205 minor resistances. The minor resistance was an initial hurdle to jump over for over a week.
The said resistance was broken after the price has rebounded twice but was stuck in the middle structure. The biggest altcoin has found itself battling the resistance at $215.
This resistance has been holding since May 7, after the overhead resistance was faced with a downward move. This present resistance has sunk ETH to the $180 low when the bulls made an attempt to break it on May 10. Currently, the market is now range-bound below $215 resistance. In a nutshell, Ethereum will have to clear the resistance at $215 and $216, before an uptrend can be achieved. The market will fall sharply to $200 if the bulls fail to break above the resistance at $215.
Ethereum indicator analysis
The bulls have pushed the crypto above the 80% range of the daily stochastic. This means that the coin is in the overbought region of the market where sellers may emerge. Another downward move is imminent as price reaches the overbought region.
Key Resistance Zones: $220, $240, $260
Key Support Zones: $160, $140, $120
What is the next direction for Ethereum?
For the past week, Ethereum has failed to accelerate upward after being stuck below the $215 resistance. The upward move that was witnessed last week was a marginal price movement. Nonetheless, there is an impending downward move, if sellers emerge at the overbought region
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.