The price of Ethereum (ETH) has fallen below the moving averages as sellers pushed the altcoin to the previous low at $2,578. Today, the bulls are trying to defend the support at $2,600 as the altcoin continues its uptrend.
The current support is crucial for buyers, as a break below it would drop the cryptocurrency to a low of $2,300. However, a price rise above the current support will catapult Ether above the moving averages. Subsequently, the bullish momentum will extend to the high at $3,200. In the meantime, the uptrend meets initial resistance at the $2,800 resistance zone. The bullish scenario will be invalidated if buyers fail to overcome the high at $2,800.
Ethereum indicator analysis
Ether is at level 43 of the Relative Strength Index for the period 14. The cryptocurrency is in the downtrend zone and below the midline 50. Ether is correcting upwards, but is encountering initial resistance to the upside. Ether is above the 50% area of the daily stochastic. This indicates that the market has resumed its bullish momentum.
Technical indicators:
Major Resistance Levels – $4,500 and $5,000
Major Support Levels – $3,500 and $3,000
What is the next direction for Ethereum?
Since February 7, Ethereum has been in a sideways movement to break through resistance at $3,200. The largest altcoin has fallen from the high at $3,200 to the low at $2,578. Ether is correcting higher but could face rejection at the 21-day moving average line. A break above the moving average would signal the resumption of the uptrend.
Disclaimer. This analysis and forecast are the personal opinions of the author and 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.
Source: https://coinidol.com/ethereum-2800-high/