Ethereum (ETH) bounced back earlier after its recent slump. The bulls failed to keep the price above the $4,600 high, leading to another decline.
Ethereum price has been in a downtrend since December 9, as the altcoin regained the previous low at $3,916.
Today, Ether is trading at $4,044 at the time. On the upside, the market could turn back up after retracing to $4,038 or $3,916. However, the selling pressure could continue if the bears fall below the current support. The largest altcoin could fall back to $3,400.
Ethereum is at level 43 on the Relative Strength Index for period 14. Ether price is in the downtrend zone and below the midline 50. ETH price bars are below the moving averages, which makes the altcoin vulnerable to a decline. Currently, ETH /USD is below the 20% area of the daily stochastic. The market has reached the oversold area of the market. Selling pressure is likely to end.
Key resistance levels - $4,500 and $5,000.
Key support levels - $3,500 and $3,000
Ethereum has suffered a setback after failing at the $4,500 resistance level. Ether has fallen into oversold territory. Meanwhile, the December 9 downtrend has shown a candlestick testing the 78.6% Fibonacci retracement level. The retracement suggests that Ethereum will fall to the 1,272 Fibonacci Extension level or $3,957.81.
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.