Upside correction in Ethereum Meets With Rejection and Could Cause Selling Pressure

Ethereum price (ETH) fell sharply after being rejected at the resistance level of $3,800. Ether fell to the low above $2,998 as bulls bought the dips.

Ethereum Price Long-Term Analysis: Bearish

Currently, Ether is consolidating above the $3,000 support and continuing its uptrend. In August, the $3,000 support held as the market resumed its uptrend. Today, ETH/USD resumed its upward movement and the market reached the high of $3,152.80 at the time of writing. 

The largest altcoin can regain its bullish momentum if buyers push the price above the moving averages or the $3,800 resistance level. ETH/USD will be forced to move between $3,000 and $3,800 if the recent high remains unbroken. Current support will also hold. However, if the bears break below $3,000 support, the market will continue to fall to the low of $2,656.

Ethereum Indicator Analysis 

The largest altcoin has fallen to level 26 on the Relative Strength Index for period 14. The altcoin is now in the oversold region of the market. Selling pressure has eased as buyers emerge in the oversold region of the market. Ether is below the 20% area of the daily stochastic. The market is also in the oversold region. Stochastic bands are sloping upwards, indicating an upward movement in prices. The cryptocurrency price is below the 21-day line and the 50-day moving averages line, which indicates a downward movement of the price. 

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 is in a downward movement, but has reached bearish exhaustion. The price of Ether is fluctuating above the $3,000 support level. Meanwhile, the downtrend from December 15 has shown a candle body testing the 61.8% Fibonacci retracement level. The retracement suggests that Ethereum will fall to the Fibonacci extension level of 1.618 or $2,925.55.  

Disclaimer. This analysis and forecast are the personal opinions of the author are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement of CoinIdol. Readers should do their research before investing funds.

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