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Ethereum (ETH) is falling after retesting the $2,600 resistance zone. Buyers have been struggling to break above the $2,600 high since January 26.
Bulls have a difficult task ahead to resume the uptrend as they need to overcome the resistance zones between $2,600 and $2,800. Once the resistance zones are overcome, the market will rally to $3,200.
The largest altcoin continues its downward movement after rejecting the recent high. Bears may push the altcoin to the low of $2,300 if selling pressure continues. However, if Ether loses the $2,300 support, the market will continue to fall to a low of $1,721. This is because the largest altcoin has been trading in a range between $2,300 and $2,600 since the January 22 plunge. At press time, Ether is trading at $2,512.40.
Ethereum indicator analysis
Ether is at level 32 on the Relative Strength Index for period 14. The RSI is fluctuating as the market continues to fluctuate in a range. The altcoin is below the 80% range of the daily stochastic. ETH/USD is in a bearish momentum. Selling pressure is likely to continue downward. Ether price bars are below the moving averages responsible for the downtrend.
Technical indicators:
Major Resistance Levels – $4,500 and $5,000
Major Support Levels – $3,500 and $3,000
What is the next direction for Ethereum?
Since January 22, Ethereum has been in a fluctuation range between the prices of $2,215 and $2,600. The altcoin will resume its uptrend when the price crosses the resistance at $2,600. The bullish momentum will extend to the high at $3,200. Ether is also expected to see a deeper correction if the bears break below the support at $2,215.
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.