Ethereum Consolidates above $4,000 Support as Bears Threaten to Short
Ethereum (ETH) is trading just below $4,200 resistance, with buyers unable to keep the price above $4,200 after three attempts at the recent high.
In the previous price action, Ether rose to a high of $4,400 but was pushed back. Sellers pushed Ether into the lower price range at $3,836. The largest altcoin is now trading in a tight range between $3,836 and $4,200. Sellers have the advantage as Ether is trading in the bearish trend zone. A break below $3,836 support will push ETH/USD to the low above $3,400. A bounce above current support, meanwhile, will catapult Ether above $4,200.
Ethereum indicator analysis
Ethereum is at level 43 of the Relative Strength Index for period 14. Ether price is in the downtrend zone and the price movement is relatively stable. The price bars of Ether are still below the moving averages that determine the current downtrend. Currently, the market is below the 50% area of the daily stochastic. It is in a bearish momentum.
Major Resistance Levels – $4,500 and $5,000
Major Support Levels – $3,500 and $3,000
What is the next direction for Ethereum?
Ethereum is currently trading in a marginal range. The movement of Ether price is limited in a range that can lead to a breakout or a sharp decline to the downside. Meanwhile, a downtrend has started on December 10. A retracement candlestick has tested the 78.6% Fibonacci retracement level. The retracement suggests that Ethereum will fall to the 1,272 Fibonacci Extension level or $3,892.
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.
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