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Ethereum ($ETH) bounced back earlier after its recent slump. The bulls failed to keep the price above the $4,600 high, leading to another decline.
Ethereum price long term analysis: bearish
Ethereum price has been in a downtrend since December 9, as the altcoin regained the previous low at $3,916.
Today, Ether is trading at $4,044 at the time. On the upside, the market could turn back up after retracing to $4,038 or $3,916. However, the selling pressure could continue if the bears fall below the current support. The largest altcoin could fall back to $3,400.
Ethereum Indicator Analysis
Ethereum is at level 43 on the Relative Strength Index for period 14. Ether price is in the downtrend zone and below the midline 50. $ETH price bars are below the moving averages, which makes the altcoin vulnerable to a decline. Currently, $ETH /USD is below the 20% area of the daily stochastic. The market has reached the oversold area of the market. Selling pressure is likely to end.
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 has suffered a setback after failing at the $4,500 resistance level. Ether has fallen into oversold territory. Meanwhile, the December 9 downtrend has shown a candlestick testing the 78.6% Fibonacci retracement level. The retracement suggests that Ethereum will fall to the 1,272 Fibonacci Extension level or $3,957.81.
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.