Ethereum Holds above Crucial Support at $1,100, Poises for More Upside Momentum
Ethereum price has fallen to $1,218 at the time of writing. It is trading below the $1,230 resistance. In its recent rallies, the biggest altcoin reached a high of $1,280 but was repelled.
The coin fell to $1,070 low and made a pullback on January 8. After the rejection and pullback, the coin is in a sideways move between $1,100 and $1,300.
For the past three days, Ethereum has been correcting in the current price range. Buyers and sellers are undecided about the next direction of the coin. However, if buyers pushed the coin above the $1,280 high, Ether will be propelled to rally above the $1,400 high. Conversely, if sellers break the $1,100 support, the biggest altcoin will drop to $880 low. However, subsequent falls are likely, if the previous support fails to hold.
Ethereum indicator analysis
Ethereum is at level 88 of the Relative Strength Index period 14. The implication is that the coin has reached the overbought region. Sellers are likely to emerge to push the prices down. However, that is not the case as the coin will resume upside momentum after days of corrections. In a strong trending market, the overbought conditions may not hold, except in a ranging market.
Key Resistance Zones: $1200, $1,300, $1,400
Key Support Zones: $800, $700, $600
What is the next direction for Ethereum?
Despite the minor retracement, the uptrend is intact. The Fibonacci tool has indicated a further upward movement of the coin. On January 7 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, Ether will reach a high of $1,481.10.
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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