Ethereum Hovers above $1,755 as Bears Attempt Further Downside Moves
The price of Ethereum (ETH) is falling back after failing to hold above the high of $2,040. Buyers retested resistance at $2,040 twice before resuming the downward move. On June 22, the bears sank Ether to the low of $1,711.40.
Immediately, the bulls bought the dips as the altcoin rallied to the high at $2,040. Over the past three days, the largest altcoin has fluctuated in a narrow range between $1,826 and $2,040. On the upside, if buyers break through the small resistance at $2,040, the cryptocurrency will rise and revisit the previous high at $2,900. Currently, the cryptocurrency is falling and could revisit the previous low at $1,755. The downtrend will resume if the bears break the previous low.
Ethereum indicator analysis
The largest altcoin is at level 36 of the Relative Strength Index for period 14. It indicates that ETH /USD is approaching the oversold region. Moreover, ETH has fallen below the 20% area of the daily stochastic. This indicates that the market has reached bearish exhaustion. Buyers are expected to take control of prices in the oversold region.
Major Resistance Levels – $4,000 and $4,500
Major Support Levels – $2,500 and $2,000
What is the next direction for Ethereum?
Ethereum has reached bearish exhaustion as the price hovers above the previous low at $1,755. Meanwhile, on the May 30 downtrend; a retraced candlestick body tested the 38.2% Fibonacci retracement level. The retracement suggests that ETH will fall to the 2.618 Fibonacci extension level or the $1,048.78 level. From the price action, ETH /USD is trading at $1,940 at the time of writing. Selling pressure will continue if sellers break the previous low.
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.