Ethereum Retraces as Buyers Recoup Above $3,300 Support
Oct 04, 2021 at 10:56 //
NewsThe price of Ethereum (ETH) fell to a low of $3,327 today and continues its sideways movement. At the current price level, the largest altcoin is considered to have fallen into oversold territory in the market.
Selling pressure is expected to be exhausted when the price reaches the oversold region. In the meantime, the market is moving above support at $3,300, and if the current support holds, Ethereum will break back up through resistance at $3,500. However, if the bears surprisingly break the current support, the market will fall back to the support at $2,800. In recent price action, the market has been in a downward correction above the $2,800 support. The largest altcoin is likely to rise again if it falls back to the support above the 50-day line SMA.
Ethereum indicator analysis
Ethereum price has broken above the descending channel resistance line. The market tends to rise when the price closes above the resistance line. The cryptocurrency price is moving above the moving averages for a possible upward movement. Ether is at level 54 of the Relative Strength Index of period 14. The cryptocurrency is in an uptrend and is capable of further upward movement.
Technical indicators:
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 a downtrend. The market drops back to support at $3,327 but resumes consolidation between $3,300 and $3,380. Meanwhile, the downtrend from October 3 has a candle body testing the 78.6% Fibonacci retracement level. The retracement suggests that Ethereum will fall but will reverse at the 1,272 Fibonacci extension level or the $3,357.34 level. The price action shows that the Ether price is consolidating above the 1,272 Fibonacci extension.
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.
OhNoCryptocurrency via https://www.ohnocrypto.com/ @coinidol.com By Coin Idol, @Khareem Sudlow