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Ethereum Hovers above $2,000 Support as Bears Threaten to Short

Ethereum

coinidol.com 16 May 2022 13:12, UTC
  
Reading time: ~2 m

The price of Ethereum (ETH) is falling as it faces rejection at the $2,200 resistance zone. In the last three days, buyers pushed the Ether price to the previous highs. The Ether price tested the $2,200 resistance level again, but failed to overcome it.

The price level of $2,200 was the previous support from May 10. Ether could have rallied to the high of $2,900 if the resistance level was broken. Nevertheless, the altcoin is falling as it is rejected from its recent high. On the downside, Ether will trade in a range between $1,763 and $2,200 if the current support holds. On the downside, the downtrend will resume if the bears fall below the previous low at $1,763.

Ethereum indicator analysis

The cryptocurrency is at level 31 of the Relative Strength Index for the period 14. The largest altcoin is trading in the oversold region of the market. The cryptocurrency is below the 40% area of the daily stochastic. This indicates that the market is in a bearish momentum. Ether is falling after being rejected at the $2,200 resistance zone.

Technical indicators:  

Major Resistance Levels - $3,500 and $4,000

Major Support Levels - $2,500 and $2,000

What is the next direction for Ethereum?

Ether is hovering above the $2,000 price level as buyers fail to maintain bullish momentum above the $2,200 high. Bears are trying to resume the downtrend below the $1,900 support. Meanwhile, the May 12 downtrend has shown a candle body testing the 78.6% Fibonacci retracement level. The retracement suggests that ETH will fall to the Fibonacci extension level of 1.272 or $1,496. 

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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