Selling pressure on Ethereum (ETH) has eased as the price fell to a low of $1,763. After the last price drop, Ether resumed its sideways movement. Today, Ether is in an upward correction, reaching the high of $2,030.
The current uptrend is likely to be short-lived as altcoin is facing rejection at the $2,200 resistance zone. Last week, buyers were rejected at the highs of $2,153 and $2,167. On the upside, a rally will catapult Ether above these resistance levels. Ether will rally above the $2,200 resistance zone. Moreover, the bullish momentum will extend to $2,800. On the downside, buyers have defended the current support as bulls have bought the dips.
Ethereum indicator analysis
The recent emergence of buyers from the oversold region has led ETH to reach the 35 level of the Relative Strength Index for the period 14. The altcoin is still trading in the bearish trend zone. The 21-day line and the 50-day line SMAs are sloping downward, indicating a downtrend. Ether is above the 25% area of the daily stochastic. The market is in a bullish momentum but is fluctuating.
Technical indicators:
Major Resistance Levels – $3,500 and $4,000
Major Support Levels – $2,500 and $2,000
What is the next direction for Ethereum?
Ether continues to fluctuate above the psychological price level of $2,000. Neither the bulls nor the bears are in control of the prices. The altcoin is fluctuating between the price levels of $1,763 and $2,200. Meanwhile, the May 12 downtrend has shown a candle body testing the 78.6% Fibonacci retracement level. The retracement suggests that ETH will fall to the 1.272 Fibonacci extension level or $1,447.43.
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-bears-reach-equilibrium/