Ethereum Faces Rejection at $2,840 High, Selling Pressure Likely
Ethereum (ETH) has been rising on the upside to retest the previous highs.
Today, buyers have retested the previous high at $2,815 but could not sustain above it. If buyers have succeeded in breaking the previous high and the previous high is retested, the uptrend is likely to resume. Ether is falling after rejection at the $2,840 high.
Since June 3, Ethereum's price has been making a series of lower highs and lower lows. Each time it makes a lower high, the selling pressure will resume. Today, Ether has made a lower high at $2,840; therefore the market is likely to decline on the downside. The market may decline to the previous low at $2,540.
Ethereum indicator analysis
Ether is at level 50 of the Relative Strength Index period 14. It indicates that there is a balance between supply and demand. The 21-day and 50-day SMA are sloping upward indicating the uptrend. Ether price has broken the resistance line of the ascending channel. It implies that the upward move is likely to continue.
Major Resistance Levels – $4,000 and $4,500
Major Support Levels – $2.500 and $2,000
What is the next direction for Ethereum?
Ethereum is likely to fall as it faces rejection at the $2,840 high. Meanwhile, on June 4 downtrend; a retraced candle body tested the 38.2% Fibonacci retracement level. The retracement indicates that ETH will fall to level 2.618 Fibonacci extension or level $2,073.98. From the price action, Ether is retracing from the previous high.
Disclaimer. This analysis and forecast are the author’s personal opinions 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.