Ethereum bulls have been on a rampage after the breakout at the $480 and $488 resistance. The altcoin has resumed the upside momentum after the clearance of the resistance levels.
However, at the $550 resistance, the coin spent two days of correction before resuming the upside momentum. On November 22, the bulls broke the $550 resistance, retested the $550 support, and then resumed the upside momentum.
Today, Ether is trading at $593 at the time of writing. The coin is facing a minor resistance at the recent high. On the upside, if buyers can sustain the bullish momentum above $580, the biggest altcoin will reach a high of $620. In the meantime, the coin is retracing on the downside. Nevertheless, if price retraces and breaks below the $550 support, the coin will resume a downward move
Ethereum indicator analysis
Since November 7, Ethereum has been trading above the 80% range of the daily stochastic. This implies that the coin has been trading in the overbought region of the market. The altcoin is at level 74 of the Relative Strength Index. The two indicators are pointing in the same direction. In a trending market, Ethereum is said to be in a strong bullish momentum.
Key Resistance Zones: $440, $460, $480
Key Support Zones: $160, $140, $120
What is the next direction for Ethereum?
From the 4 – hour chart, the price action’s price level is almost at par with the Fibonacci tool analysis. On November 21 uptrend; a retraced candle body tested the 61.8% Fibonacci retracement level. This retracement indicates that the coin will rise to level 1.618 Fibonacci extensions. That is the high of $617.08. The biggest altcoin has risen to $585 at the time of writing.
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.