Ethereum Declines Gradually as It May Attract Buyers at Lower Levels
Oct 22, 2022 at 09:30 //
PriceThe price of Ethereum (ETH) is in a sideways trend as the largest altcoin consolidates above the $1,200 support. In recent price action, Ether has moved between $1,220 and $1,400.
Buyers managed to keep the price above the 21-day line SMA, but failed to break the resistance at $1,400. Today, Ether fell below the 21-day line SMA and resumed its consolidation above the support at $1,200
ETH/USD is trading in a narrow range above $1,200 support but below the 21-day line SMA. The doji candlesticks, small indecisive candles, are responsible for the sideways movement. The appearance of the doji candlesticks indicates that buyers and sellers are undecided about the direction of the market. The bottom line is that a price recovery or breakdown is imminent.
Ethereum indicator analysis
Ether has declined and remains at the 42 level of the Relative Strength Index for the period 14. The cryptocurrency is trading marginally as it resumes its consolidation. The price bars are below the moving average lines as Ether consolidates. This means that there is a probability of a possible breakdown or recovery. Ether has fallen into the oversold territory in the lower time frame. This indicates that the coin has reached bearish exhaustion.
Technical indicators:
Major Resistance Levels - $2,000 and $2,500
Major Support Levels - $1,500 and $1,000
What is the next direction for Ethereum?
On the 4-hour chart, it is likely that Ether will continue to fall as it faces the rejection of the high at $1,300. In the downtrend from October 20, Ether has completed an upward correction and a candlestick has tested the 61.8% Fibonacci retracement level. The correction suggests that ETH will fall to the 1,618 Fibonacci extension level or $1,228.84.
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