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Ethereum Risks Downward Move If Bulls Fail to Buy From the Dips

#OhNoCrypto

May 11, 2020 at 11:39 //

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Ethereum was overbought at $227

Finally, the $200 support has been broken after a general breakdown of the cryptocurrency market. Ether was previously in a downward move when ETH was overbought at $227.

The market dropped after the overbought region to $195 low. An upward correction was made as the price action resulted in $220 and $210 resistances. 

Nonetheless, in the recent breakdown, Ether dropped to $180, but the price corrected upward above $185. Perhaps the crypto will fall to $170 low if selling pressure resumes. Meanwhile, the price action is indicating a bearish signal. The bulls will be buying on dips if the buyers turn up above the support line of the channel. Incidentally, a rally above $220 is possible, if the momentum is sustained after buying from the dip. At the moment, a downward move is expected.

Ethereum indicator analysis 

Since April 29, ETH has been above the 90% range of the daily stochastic. With the appearance of sellers, prices dropped as the indicator fell below a 40 % range. In other words, the market had bearish momentum. Similarly, the price action is indicating a bullish signal; the market is likely to have bearish momentum.

ETH-CoinIdol_(24).png

Key Resistance Zones: $220, $240, $260

Key Support Zones: $160, $140, $120

What Is the Next Direction for Ethereum? 

Ethereum is likely to be above the $200 support if the bulls are successful at buying from the dips. Conversely, if the selling pressure resumes and the $180 support cracks, the crypto will fall to another low of $170 or $150. Traders are to adjust their parameters below the current lows.

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