Despite the breakdown on November 18 and the subsequent downward correction, Ethereum rebounded above $470 to reach the previous high.
Ether broke the $495 resistance and rallied to $518. The biggest altcoin is making a pullback after reaching the recent high. On the upside, the crypto will resume upside momentum, if it retraces and finds support above $500 or $488 support.
Buyers are likely to push the coin to the next resistance at $550 high. Conversely, if the retracement persists, the price may break below $488 and continue the downward move. The bottom line is that the retracement must not slide beyond the $450 support to avoid the stoppage of the upside momentum. The critical support at $450 has been the basis for the upside momentum. Ether is trading at $505 at the time of writing.
Ethereum indicator analysis
Ether has fallen to level 68 of the Relative Strength Index period 14. It indicates that the coin is in the uptrend zone and above the centerline 50. There is a possibility of the coin rising on the upside. Meanwhile, the daily stochastic is still indicating that the crypto is in the overbought region.
Key Resistance Zones: $440, $460, $480
Key Support Zones: $160, $140, $120
What is the next direction for Ethereum?
Ethereum bulls have broken the major resistance level. The altcoin is most likely to rise. On November 18 uptrend, a retraced candle body tested the 61.8% Fibonacci retracement level. This retracement indicates that the coin will fall to level 1.618 Fibonacci extensions. That is the high of $527.75
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.