The price of Ethereum (ETH) has come under renewed selling pressure as the largest altcoin has hit its previous low at $1,701 once again. At the time of writing, Ethereum is trading at $1,773. Prior to the recent plunge, Ether traded between $1,900 and $2,200 for two weeks.
The bears broke through the $1,900 support and hit the $1,700 low. This current price action has pushed the altcoin into the oversold territory of the market. Further selling is doubtful as buyers are emerging in the oversold region of the market. However, if the bears break below the $1,700 support, the downtrend will resume and the price will fall to the low of $1,370. The largest cryptocurrency will be forced to move between $1,700 and $2,200 if the current support holds.
Ethereum indicator analysis
ETH is at level 30 of the Relative Strength Index for period 14. The cryptocurrency has been trading and has reached the oversold area of the market. Selling pressure may be easing as buyers are emerging in the oversold area of the market. The 21-day line and the 50-day line SMAs are sloping downward, indicating a downtrend. The moving average of the 21-day line acts as a resistance line for the price bars. Ether is below the 20% area of the daily stochastic.
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 is in a downtrend as it has reached the oversold area of the market. The cryptocurrency has regained the previous low at $1,701. The downtrend will continue if the current support is broken. Meanwhile, on May 12 downtrend, a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that ETH will fall to the level of 1.272 Fibonacci extension or $1,370.14.
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-slumps-1701/