For the past two days, Ether price has been consolidating near the $3,000 resistance zone. Buyers fail to sustain the bullish momentum above the recent high. Nonetheless, if the current consolidation continues, the crypto has a greater chance of price breakout.
It is assumed that consolidation near a resistance zone increases the chances of a breakout. The biggest altcoin will be confined in a range between $2033 and $3,000 for a few days if the current resistance remains unbroken. The lower price range was created when the bears tested the current support twice in the last bearish impulse.
The bears could not break the current support. There are candlesticks with long tails indicating that the support at $2033 has strong buying pressure. Ether will rally to $3,500 if buyers sustain ETH above the current resistance. On the other hand, sellers will revisit the previous low if the altcoin turns from the resistance zone.
Ethereum indicator analysis
Ether is falling as it faces rejection from the 50-day SMA. The downtrend will resume if price breaks below the SMAs. The altcoin has fallen to level 41 of the Relative Strength Index period 14. It indicates that the market is in the bearish trend zone which makes the crypto prone to fall.
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 falling as price faces rejection at level $3,000. On May 13 downtrend; a retraced candle body tested the 38.2% Fibonacci retracement level. This retracement indicates that Ether will fall to level 2.618 Fibonacci extension or the low of $2,311.04. The altcoin has already tested the Fibonacci level and pulled back. A revisit is to the previous level is likely.
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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