The price of Ethereum (ETH) is in a downtrend, but the altcoin has found support above the $4,209 price level.
It is above the 50-day line but below the 21-day moving averages. Selling pressure on Ether has eased as it fluctuates between the moving averages.
Ethereum price long term analysis: bearish
Yesterday’s uptrend was resisted at the $4,400 resistance zone as the altcoin resumed its sideways movement. The largest altcoin could have risen to $4,700 if the bulls had succeeded above the recent high.
Now, Ether is moving above support at $4,200 and above the 50-day moving average. Ether will fall to the low of $3,960 if the price breaks the current support. However, if support holds, ETH/USD will continue to fluctuate between the moving averages.
Ethereum indicator analysis
Ether is at level 46 of the Relative Strength Index for period 14. The largest altcoin is moving in the downtrend zone as selling pressure is easing. The altcoin has resumed its bullish momentum as it is above the 25% area of the daily stochastic. Buyers are showing up to push prices higher.
Key resistance levels – $4,500 and $5,000.
Key support levels – $3,500 and $3,000
What is the next direction for Ethereum?
On the 4-hour chart, Ethereum is in an uptrend. The uptrend is encountering rejection at a high of $4,400. A break above this resistance zone will signal the resumption of the uptrend. Meanwhile, the uptrend from November 20 has a candle body testing the 61.8% Fibonacci retracement level. The retracement suggests that Ethereum will rise to the 1,618 Fibonacci Extension level or $4,555.66.
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 by CoinIdol. Readers should do their research before investing funds.
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