Ethereum Resumes Upside Momentum as Bulls Attempt to Reclaim the $4,000 High
The price of Ethereum (ETH) is making impressive moves as buyers try to recapture the $4,000 price level. At the time of writing, Ether is trading at $3,774.
The largest altcoin has previously retreated to the low of $3,736 as bulls have bought the dips. Since October 15, the cryptocurrency has rallied back above the $3,740 support and continued its rally towards the previous highs.
Buyers are tipped to retake the previous high of $4,000. However, the cryptocurrency is likely to face strong resistance at the previous high. It is also believed that the market will reach the overbought zone. This will attract sellers who will push the prices down. In the previous price action, ETH /USD dropped sharply to the low of $2,740. Meanwhile, Ether is in a slight retracement that will push it to resume its upward momentum.
Ethereum indicator analysis
Ether has risen to the 64 level of the Relative Strength Index of period 14. It is rising and approaching the overbought area of the market. However, in a market with a strong trend, the overbought condition may not be respected. Ether is above the 80% area of the daily stochastic. This indicates that the market is in bullish momentum and has reached bullish exhaustion.
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. The cryptocurrency broke through the initial resistance at $3,640 and rallied to $3,820. The altcoin is trying to break the recent high and resume the uptrend. Meanwhile, the October 14 candlestick retraced uptrend tested the 61.8% Fibonacci retracement level. The retracement suggests that Ethereum will rise to the 1,618 Fibonacci Extension level or $3,944.
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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