The price of Ethereum (ETH) is in a downward correction as the price falls below the moving averages. Today, Ether fell to a low of $2,588.
The recent drop in the price is due to the failure of buyers to break above the moving averages on March 9. Buyers have been struggling to overcome the moving averages since February 9. Every time the buyers fail to break the moving averages, the largest cryptocurrency will make another low. In other words, the Ether price has reached a series of lower highs and lower lows.
On the downside, ETH/USD will regain the previous lows of $2,301 or $2,160 if the downtrend continues. On the upside: if the bulls break the moving averages and the bullish momentum continues, Ether will come out of the downside correction. Ethereum will regain its bullish momentum if it breaks above the resistance at $3,200.
Ether is at the level 44 of the Relative Strength Index for the period 14. The cryptocurrency is in a downtrend area and below the midline 50. The altcoin is in a position to fail to the downside. The moving averages are sloping south, indicating the downtrend. Ether is below the 30% range of the daily stochastic. The market is in a bearish momentum.
Key resistance levels - $4,500 and $5,000.
Key support levels - $3,500 and $3,000
ETH/USD is still in a downtrend, but selling pressure has eased after the January 22 price drop. Meanwhile, the downtrend from January 8; a retracement candlestick tested the 78.6% Fibonacci retracement level. The retracement suggests that ETH will fall to the 1.272 Fibonacci extension level or $2,448. Ether continues to move above the level of the 1.272 Fibonacci extension.
Disclaimer. This analysis and forecast are the personal opinions of the author 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.