Ethereum Retraces from $2,300 High, Upside Ahead
Ethereum (ETH) price failed to break above resistance at $2,300 on June 30. A breakout above the recent high would have pushed Ether to retarget previous highs of $2,600 and $2,900. The largest altcoin faces rejection at the recent high.
The current price decline could reach a low of $2,000. This current retracement is a setup for a possible rise above the high at $2,300. The largest altcoin will continue a new upward move above the $2,000 support. However, if the bears break below the $2,000 support, the sellers will push Ether to the previous low at $1,710.
Ethereum indicator analysis
The bears are breaking below the resistance line in the descending channel. If the price breaks through and closes below the resistance line, the downtrend will resume. The altcoin is at level 43 of the Relative Strength Index of period 14, which indicates that the cryptocurrency is in the bearish trend zone and is capable of falling downwards.
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 been in a downtrend since July 1. Meanwhile, on July 1 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that ETH will fall to the 1,272 Fibonacci extensions level or the $2,006.01 level. From the price action, it appears that the bears have pushed ether to the low of $2,029. A further downward move is likely.
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.