Ethereum (ETH) is in a downward correction but consolidating above $2,300 support.
As the downtrend eased on January 22, ETH/USD resumed its sideways movement. On January 26, buyers pushed the altcoin up to the resistance of $2,800. Ether was immediately pushed back when the altcoin fell back to the support of $2,300.
Today, ETH/USD is in a trading range between $2,300 and $2,700. If buyers retest and break through the high at $2,700, the market will rise to the $3,200 level. ETH/USD will continue to trade in a range between $2,300 and $2,700 if the trading range is not broken. The altcoin will develop a trend if these levels are broken. The largest altcoin is trading at $2,403 at the time of writing.
Ethereum indicator analysis
The current range bound movement has resulted in Ether being at level 25 on the Relative Strength Index for period 14. Ether is trading in oversold territory as buyers are expected to emerge to push prices higher. Also, Ether is above the 25% area of the Stochastic on the daily chart. The bullish momentum is unstable as the stochastic bands continue to slope above the current support.
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?
On the 4-hour chart, Ethereum is fluctuating between the price levels of $2,170 and $2,600. On January 24, the bears tried to break the current support but retreated. The candlestick indicates a long tail. This indicates that there is strong buying pressure at the current support. Similarly, on January 26, the altcoin rallied to $2,800 and was beaten back. On that day, the candlestick shows a long wick. This indicates that selling pressure at higher price levels is overwhelming.
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-2300-rallies/