Yesterday, the price of Ethereum (ETH) plunged to a low of $1,763 as bulls bought the dips. Today, the largest altcoin is in an upward correction with the market reaching a high of $2,148. For the uptrend to continue, the bulls need to break above resistance at $2,201.
A break above this resistance will push Ether to rise to the next resistance at $2,955. The largest altcoin will be forced to rangebound between $1,763 and $2,200, where the bulls failed to overcome the recent high. On the other hand, if Ether turns from the recent high and falls below the current support, the downtrend will resume. The market will continue to fall to the low of $1,350. Meanwhile, Ether is moving above the $2,000 support.
Ethereum indicator analysis
The cryptocurrency is at level 30 of the Relative Strength Index for period 14. Ether has fallen into the oversold area of the market, but no buyers have appeared in the oversold area yet. It is above the 40% area of the daily stochastic. This indicates that the market is in a bullish momentum. The 21-day line and the 50-day line SMAs are down. The 21-day line SMA is the resistance line for prices.
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?
Ether is in a downtrend but fluctuating below the high of $2,150. The upward correction is hindered at the moment. Meanwhile, the downtrend from May 12 has shown a candle body testing the 61.8% Fibonacci retracement level. The retracement suggests that ETH will fall to the Fibonacci extension level of 1.618 or $1,366.
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-downtrend-subsides/