Ethereum Reaches Oversold Region as Altcoin Hovers Above $2,800

The price of Ethereum (ETH) is in a downtrend as the largest altcoin has fallen to a low of $2,805.

Ethereum price long-term analysis: bearish

Ether is falling as a result of the rejection of the high at $3,170. The altcoin retested the resistance level twice, which led to the formation of a bearish double top. 

Selling pressure is likely to extend to the support low at $2,700. Currently, the altcoin is trading above the immediate support at $2,800 and selling pressure will resume if the price falls below the support at $2,800. On the other hand, if the current support holds, it would be a sign of resumption of the uptrend. Ether is trading at $2,805 at the time of writing.

Ethereum Indicator Analysis  

Price indicators point to an oversold condition for the cryptocurrency. First, Ether is at level 26 of the Relative Strength Index for period 14. Second, the altcoin is below the 20% area of the daily stochastic. All indicators have confirmed a bearish exhaustion of the cryptocurrency. A further decline is unlikely as the altcoin falls into the oversold zone. Perhaps, the Ether will hold above the current support.

Technical Indicators: 

Key resistance levels - $4,500 and $5,000.

Key support levels - $3,500 and $3,000 

Where does Ethereum go from here? 

Ethereum is in a downtrend as the altcoin has reached the low of $2,805. Meanwhile, the downtrend from April 11, a retraced candle, tested the 61.8% Fibonacci retracement level. The retracement suggests that Ethereum will fall to the 1,618 Fibonacci Extension level or $2,738. 69. the altcoin is moving above the $2,815 support.

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.