Ethereum Holds above $3,400 Support as Bulls Attempt to Breach Recent Highs
Ethereum price (ETH) is trading in the bullish trend zone today as bulls break out above the moving averages. The Ether price is holding steady above the $3,400 support after buyers keep the price above the moving averages.
However, buyers could not keep the ETH price above the $3,640 resistance. Last week, the largest altcoin fluctuated below the resistance level for a possible breakout. Moreover, ETH/USD has been trading in the overbought zone since October 2. Sellers are expected to show up at the overriding resistance. However, in a strongly trending market, the current resistance level would be broken. It is expected that the cryptocurrency will rise to $4,000. Today, the price of ETH is retesting the $3,640 resistance zone.
Ethereum indicator analysis
Ether is at level 60 of the Relative Strength Index of period 14, which means that it still has room for upward movement. It is believed that the altcoin is overbought when it reaches level 70. Moreover, the uptrend will continue indefinitely as long as the price bars are above the moving averages. The daily stochastic indicates that Ether was above the 80% area of the price indicator last week. The altcoin’s decline is imminent.
Major Resistance Levels – $4,000 and $4,500
Major Support Levels – $3,500 and $3,000
What is the next direction for Ethereum?
On the 4-hour chart, Ether is in the bullish trend zone. A break above the current resistance will signal the resumption of the uptrend. However, if it is rejected, the altcoin will fall and resume its downward movement. Meanwhile, the October 3 uptrend has a candlestick testing the 78.6% Fibonacci retracement level. The retracement suggests that Ethereum will rise but reverse at the 1,272 Fibonacci Extension level or $3,682.22.
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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