Ethereum Crashes Down After Rejection from $160 Resistance Zone

Ethereum Crashes Down After Rejection from $160 Resistance Zone

Key Resistance levels: $225, $250, $275
Key Support Levels: $150, $125,$100

ETH/USD Long-term Trend: Ranging
A few days ago, the bulls were making frantic efforts to push Ethereum back to the range-bound zone. The market reached a high of $157 and tumbles again. Consequent upon that the coin is fluctuating below the range-bound zone. In other words, the price will fluctuate between the low of $136 and $157 before it can break into the larger range-bound zone.

However, if the price fluctuates and breaks above $157, ETH will jump to the next resistance at $175. Conversely, the situation will arise when the price breaks below $136; this will sink ETH to the low of $120. Meanwhile, Ethereum is getting weaker as price movement is rather slow. More buyers are needed at a lower price level to push the coin to the upper price level.

ETHUSD_Daily Chart

Daily Chart Indicators Reading:
Ethereum is gradually pushing upward and out of the oversold region as price reaches the level 38 of the Relative Strength Index. The coin is still in the bearish trend zone. The price will have to break above the EMAs to reach the bullish trend zone. Meanwhile, the EMAs are sloping downward indicating the downtrend.

ETH/USD Medium-term bias: Ranging
On the 4-hour chart, the market is in a price range between the levels of $136 and $157. The price is not fluctuating but in a choppy price action. Traders should stay away in choppy price action. The consolidation is likely to be for a few more days.

ETHUSD-4-Hour Chart

4-hour Chart Indicators Reading
The 21-day SMA and 50-day SMA are sloping horizontally indicating that price is consolidating. The coin is trading above 40% range of the daily stochastic which indicates bullish momentum.

General Outlook for ETH
Ethereum is consolidating below the horizontal channel as the bulls fail to sustain the bullish move into the range-bound zone. Traders should suspend trading as the market is consolidating at a lower price level. Meanwhile, stop-loss orders should be placed below the $136 support level. However, as the market consolidates , buyers and sellers seem to have reached an equilibrium. Nevertheless, more buyers at a lower price level will push the coin upward.

ETH Trade Signal
Instrument: ETHUSD
Order: Buy Limit
Entry price: $140
Stop: $125
Target: $180

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.