Ethereum Retraces from $1,400 Resistance Zone, Poises for a Fresh Uptrend

For the past 48 hours, Ethereum has been retracing after retesting the $1400 resistance zone. The current retracement will persist until it reaches a low of $1,240.

At that price level, Ethereum would have fallen into the previous range bound zone of $1,160 and $1.280. The biggest altcoin will resume an upward move after the minor retracement. On the upside, Ethereum upward move will depend on breaking the resistance levels of $1,400 and $1,440. 

The biggest altcoin has a target price of $1,845.44 if the current resistance levels are breached. On the downside, the market is likely to resume upward after testing the low of $1240. Previously, the $1,050 support has been the crucial support for the resumption of upside momentum. Ether will encounter a deeper correction if the crucial supper is breached.

Ethereum indicator analysis

Ethereum is retracing and approaching the bullish trend line. There could be a change in the trend if price breaks below the trend line. Alternatively, if price tests and rebounds above the trend line is an indication of an upward move. Ether has fallen to level 60 of the Relative Strength Index period 14. The coin will have enough room to rally at the time of the upward move.

Key Resistance Zones: $1600, $1,700, $1,800

Key Support Zones: $800, $700, $600 

What is the next direction for Ethereum? 

Ethereum has retraced and reached bearish exhaustion. Perhaps, the market will resume an upward move. The Fibonacci tool analysis will hold if the resistance is reached. 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. It will reach a high of $1,845.44.  

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 research before investing funds.

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