Ethereum Holds Crucial Support above $1,020 but Struggles to Break Resistance at $1,240January 16, 2021
Ethereum bulls are still holding on above the $1,000 support level. The biggest altcoin is trading at $1,176 at the time of writing.
Today, the crypto is rising because it slumped yesterday to the low at $1,070. For the past three days, buyers have been struggling to break the minor resistance at $1,240. Each attempt at the resistance attracts a corresponding rejection. Yesterday, Ether was resisted at a recent high as it fell to the low at $1,070.
For the crypto to resume a fresh uptrend, the bulls have to break the resistance at $1,240 and $1,300. A breakout at these resistance levels will accelerate price movement. If the bulls are successful, Ether will rally above $1,400. The bullish momentum will further extend to a high of $1.700. Conversely, if the bulls fail to break the overhead resistance, the crucial support is likely to be tested and broken. The selling pressure will extend to the low at $840.
Ethereum indicator analysis
The crypto’s price is at level 66 of the Relative Strength Index period 14. The RSI will be in the overbought region above level 70. In the overbought region, the altcoin will not have any room to rally on the upside. The coin is also above the 72% range of the daily stochastic. The coin has bullish momentum. However, the altcoin will be in an overbought region above the 80% range.
Key Resistance Zones: $1200, $1,300, $1,400
Key Support Zones: $800, $700, $600
What is the next direction for Ethereum?
Ethereum bulls have been making positive moves to break into previous highs. According to the Fibonacci tool, Ether is likely to move up, once the initial resistance is broken. On January 9 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 $1,733.97
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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