The price of Ethereum (ETH) has fallen and dropped below the 21-day moving average. Now, ETH price reached the low of $3,170.
Ethereum price long-term analysis: bullish
The downtrend is expected to continue to the next support at $3,038.90. The next support is above the 50-day moving average line. The downtrend will ease if the altcoin holds above the 50-day moving average line.
This means that the altcoin will be forced to move between the moving averages for a few more days. The biggest altcoin develops when the moving averages lines are broken. For example, if the price breaks above the 21-day line SMA, the market will retarget the resistance at $3,400 and $3,500. Similarly, if the bears break below the 50-day moving average line, the market will drop to $2,447. Nonetheless, if the moving average lines remain unbroken, the movement within the trading range will continue.
Ethereum indicator analysis
The recent decline has caused Ether to fall to level 48 of the Relative Strength Index for the period 14. The altcoin is in the downtrend zone and may fall further. The price of the cryptocurrency is between the moving averages, which indicates a possible movement within the trading range. The moving averages of the 21-day line and the 50-day line are up, indicating an uptrend. Ether is below the 20% range of the daily stochastic. The market is in a bearish momentum.
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?
Ethereum is in a downward movement. Selling pressure has resumed after the rejection of the high at $3,300. Meanwhile, on April 6, the downtrend; a retraced candlestick tested the 78.6% Fibonacci retracement level. The retracement suggests that ETH will fall to the 1,272 Fibonacci Extension level or $3,033.75.
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/eth-reaches-oversold/