The price of Ethereum (ETH) is in a downward correction, consolidating between the $2,600 and $2,800 levels. The earlier downtrend has weakened after the altcoin fell to a low of $2,306 on February 24.
Ethereum price long-term analysis: bearish
Bulls bought the dips as ETH price resumed consolidation above $2,600 support. The largest altcoin will resume its upward momentum if buyers keep the price above the moving averages. If the bulls break through the resistance at $2,800, Ether can also rise again. However, if buyers fail to break above the recent highs, Ether will continue to consolidate above the $2,600 support. But sellers will also try to break below the $2,600 support. This already happened on February 24, when the bulls bought the dips.
Ethereum Indicator Analysis
Ether is at level 42 of the Relative Strength Index for the period 14. The altcoin is in a downtrend area and below the midline 50. Moreover, Ether’s price is below the moving averages, which makes it vulnerable to a decline. Ether is above the 25% area of the daily stochastic. It has previously fallen into the oversold area of the market. Buyers are emerging to push the altcoin higher.
Technical Indicators:
Key resistance levels – $4,500 and $5,000.
Key support levels – $3,500 and $3,000
What is the next direction for Ethereum?
Ether is in the oversold region of the market. ETH /USD is picking up after the recent decline. Meanwhile, on February 22, the downtrend; a retracement candlestick tested the 78.6% Fibonacci retracement level. The retracement indicates that ETH will fall but will reverse at the 1,272 Fibonacci extension level or $2,333.02. The price movement shows that Ether reversed at the level of the 1,272 Fibonacci extension.
Disclaimer. This analysis and forecast are the personal opinions of the author 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/eth-consolidates-as-buyers/