In this digitized world, data has become an integral part in any domain, including healthcare. The healthcare industry produces a huge amount of digital data, by utilizing information from all sources of healthcare, including the patients' demographics, medications, vital signs, physician's observations, laboratory data, billing data, data from various wearable sensors, etc. With the rapid growth of the wireless technology applications, there has also been a significant increase in the digital health data. New medical discoveries and new eHealth-related technologies, such as mobile apps, novel sensors, and wearable technology have contributed as important data sources for healthcare data. Nowadays, there is a huge potential to improve the healthcare quality and customer satisfaction with the help of machine learning (ML) algorithms applied on time-domain and frequency-domain healthcare data obtained from wearables and sensors. This systematic literature review examines in depth how health data from sensors can be processed and analyzed using ML techniques. The review focuses on the following diseases for obtaining the eHealth data: diabetes mellitus type 1 and type 2, hypertension and hypotension, atrial fibrillation, bradykinesia, dyskinesia, and fever related diseases. The data for the systematic literature review was collected from four databases, Medline, Proquest, Scopus, and Web of Science. We selected 67 studies for the final in-depth review out of the initial pre-selected papers. Our study identified that the major part of eHealth data is obtained from the sensors such as accelerometer, gyroscopes, ECG (Electrocardiogram), EEG (Electroencephalogram ) monitors, and blood glucose sensors. This study also examines the different feature types, feature extraction methods, and ML algorithms used for eHealth data analysis. Our review also shows that neural network (NN) algorithms and support vector machines (SVM) have shown so far the best performance for analyzing the healthcare data among other ML algorithms studied in the literature.