Ethereum Engages Resistance at $3,600 as Bulls and Bears Struggle for Price Possession
The price of Ethereum (ETH) has risen back above the 50-day line SMA today, reaching a high of $3,600. Since October 6, Ether has peaked at $3,600 as buyers fail to sustain bullish momentum above the recent high.
On October 6, the altcoin experienced resistance as it fell to support above the moving averages.
Today, buyers are attempting to break through resistance at $3,600. A break above the current resistance will catapult the cryptocurrency above the high at $3,800. However, the largest altcoin will face rejection at the resistance zone at $4,000. Currently, buyers are still struggling to break above the $3,600 level. The largest altcoin will fall and continue its correction if it fails to overcome the recent high.
Ethereum indicator analysis
Ether is at level 59 of the Relative Strength Index of period 14. It is above the midline 50 and has room for an upward movement. Ether is above the 80% area of the daily stochastic. The largest altcoin is in a bullish momentum and approaching the overbought area.
Major Resistance Levels - $4,000 and $4,500
Major Support Levels - $3,500 and $3,000
What is the next direction for Ethereum?
On the 4-hour chart, Ether is in an uptrend as buyers try to break through resistance at $3,600. Meanwhile, the uptrend from October 6 has shown a candlestick testing the 78.6% Fibonacci retracement level. The retracement suggests Ethereum will rise but reverse at the 1,272 Fibonacci extension or $3,884.65.
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.
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