Ethereum (ETH) is in a downtrend after the bulls were beaten back at the high of $1,280. Since June 26, the price of Ether has steadily fallen to the psychological price level of $1,000. Today, ETH/USD has fallen to the low of $1027.60.
The bears will try to break the current support and Ether will regain the previous low of $881. If the selling pressure continues, the downward momentum will extend to the low of $600. However, the bearish scenario will be invalidated if the Ether price holds above the $1,000 support and rises again. The rally will drive Ether to the high of $1,703, the May 27 price level.
Ethereum indicator analysis
Ether is at level 30 of the Relative Strength Index for period 14. The current selling pressure has pushed Ether into the oversold zone of the market. The altcoin will be in a heavily oversold region if Ether regains the previous low of $881. The price of the cryptocurrency is below the 40% area of the daily stochastic. The market is in a bearish momentum.
Technical indicators:
Major Resistance Levels – $2,000 and $2,500
Major Support Levels – $1,000 and $500
What is the next direction for Ethereum?
Ether is trading above the psychological price level of $1,000 while the bears are trying to break the current support. The downtrend will continue if the price falls and drops below the $881 support. Meanwhile, on June 18 downtrend, a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that ETH will fall, but will reverse at the level of 1,272 Fibonacci extension or $600.
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-decline-881/