Ethereum Suffers Setback, Faces Rejection at $400
Nov 02, 2020 at 11:34 //
News
Today, Ethereum suffers a setback as buyers fail to push the price above the $404 resistance. Following its recovery above $380 support, the crypto was set to retest the $420 resistance.
Unfortunately, buyers could not sustain the upward move. The crypto has plunged to the support above $380. ETH price is now hovering above the critical support. It is unclear if the selling pressure will continue beyond the critical support.
A break below $380 support will indicate a downward movement of the coin. That means sellers will push the price to a $360 low. Conversely, if in the coming few hours, the critical support remains unbroken, then it is assumed that the upward move will resume. Presently, Ether has fallen to a $387 low at the time of writing.
Ethereum indicator analysis
The price has broken the 21-day SMA. The coin will resume a downward move if the SMAs are broken. Otherwise, ETH will continue to rise. Also, the coin is at level 51 of the Relative Strength Index period 14. This also indicates there is a balance between supply and demand.
Key Resistance Zones: $220, $240, $260
Key Support Zones: $160, $140, $120
What is the next direction for Ethereum?
Ethereum's upward move is being hindered by the resistances at $395 and $420. On October 22 uptrend; the coin was resisted at $421. However, the last retraced candle body retested the 38.2% Fibonacci retracement level. This retracement indicates that the coin will rise and reach level 2.618 Fibonacci extension or the high of $519.44.
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.
OhNoCryptocurrency via https://www.ohnocrypto.com/ @coinidol.com By Coin Idol, @Khareem Sudlow