Ethereum Struggles to Sustain Above $480 Resistance, Eyes the $550 High
Ethereum bulls have been able to sustain the recent rallies above $450 since November 7. However, the bulls have not been able to break the $480 resistance convincingly.
Yesterday, buyers pushed Ether to the $480 resistance zone but were repelled. A repeat of the price action is ongoing. On the upside, if the bulls break the $480 resistance, the market will rise and reach $488 high. It is most likely the price action will not end at $488 high.
Ethereum will be catapulted to reach the $520 and above if the $488 resistance is breached. At that price level, the biggest altcoin will be out of the bear market. Conversely, if the bulls fail to break the $480 resistance convincingly the coin will fall and resume the range-bound movement between $430 and $460. Today, Ethereum is trading at $471 at the time of writing.
Ethereum indicator analysis
Following the recent price surge, Ethereum has been trading above the 80% range of the daily stochastic. This implies that sellers may emerge in the overbought region. However, the overbought condition may not hold in a trending market. Ether is retracing after testing the $480 resistance zone. The selling pressure will persist if price retraces and breaks below the resistance line of the ascending channel.
Key Resistance Zones: $440, $460, $480
Key Support Zones: $160, $140, $120
What is the next direction for Ethereum?
Since November 11, Ether price has been fluctuating above the $450 support but has failed to break the $480 resistance. The Fibonacci tool analysis will hold if price breaks the resistance at $480. As already indicated on the chart, on November 7, the last retraced candle body tested the 50% Fibonacci retracement level. This indicates that ETH will rise and reach level 2.0 Fibonacci extension. That is the high of $538.36 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.
coinidol.com By Coin Idol