Today, August 16, 2021, Ethereum price (ETH) has reached the high of $3,322 but is on the verge of rejection.
The largest altcoin is likely to fall back to the low of $3,220 before resuming its upward movement. The recent retracement is not unrelated to Ether's overbought condition. The uptrend will continue if the price retraces and finds support above $3,220. On the upside, a break above $3,340 will push Ether to reach the high of $3,400. However, if buyers fail to break the recent high, the cryptocurrency asset will remain in a trading range below the resistance zone.
Meanwhile, the largest altcoin is trading in the overbought zone, while Ether is trading marginally.
Ethereum is trading in an ascending channel. The cryptocurrency will rise as long as the price bars above the moving averages. However, if the price falls below the support line, selling pressure will resume. The market will resume its upward momentum when the price breaks above the resistance line of the ascending channel. Ethereum is at level 69 of the Relative Strength Index of period 14. The cryptocurrency has no room for an upward rally.
Major Resistance Levels - $4,000 and $4,500
Important Support Levels - $3,000 and $2,500
The market is likely to move back up as the cryptocurrency consolidates above the $3,200 support. Meanwhile, the August 16 uptrend has retraced a candlestick that tested the 78.6% Fibonacci retracement level. The retracement suggests that Ethereum will rise but reverse at the 1,272 Fibonacci extension level or the $3,398.76 level.
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.