Ethereum Struggles Below $3,500 as Altcoin Reaches Overbought Region

The Ethereum price (ETH) continues to fluctuate below the $3,500 resistance level after breaking through the $3,400 resistance.

Ethereum Price Long-Term Analysis: Bullish

Since April 1, the largest cryptocurrency has been limited to a level below the high of $3,500. There is a tendency for the cryptocurrency to continue its upward movement if buyers break the resistance at $3,400. On the upside, Ether will rise to the high of $3,800 if the current resistance is broken. However, further upside is doubtful as the market has reached the overbought zone. 

The price indicator has shown the overbought condition of the cryptocurrency, which hinders further upward movement. In a market with a strong trend, the overbought condition may not last. The cryptocurrency will continue to move up. On the downside, Ether will fall to a low of $3,400 and $3,200 if it is rejected at the recent high.

Ethereum Indicator Analysis  

Ether has risen to the level 70 of the Relative Strength Index for the period 14. ETH /USD is trading in the overbought region of the market. Sellers will emerge and push prices down. Moreover, Ether has a bullish crossover. That is, the 21-day line is crossing above the 50-day moving averages, indicating a buy order. Ether is above the 50% area of the daily stochastic. This indicates that Ether has resumed its bullish momentum. The moving averages are sloping upward, indicating an uptrend.

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 has continued its uptrend but faces resistance at the high of $3,500. The uptrend will continue once the current resistance is overcome. Meanwhile, the uptrend from April 2 has shown a candle body testing the 61.8% Fibonacci retracement level. The retracement suggests that ETH will rise to the Fibonacci extension level of 1.618 or $3,680.25.

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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