Ethereum Slumps as Buyers Defend the Critical Support at $2,900

The Ethereum price (ETH) is on the retreat today, August 9, after being rejected at the high of $3,187. The current retracement is reaching bearish exhaustion as the altcoin hits the low of $2,934.20.

Ethereum Price Long-Term Analysis: Bullish

Ethereum has been in a steady uptrend since July 21. Ethereum rallied to an overbought area of $3,172. The altcoin has been trading in the overbought territory for the past week. The recent decline was a result of sellers showing up in the overbought region. 

On the upside, buyers are expected to push Ether to the previous high of $3,160 if the $2,900 support holds. Further upside to $3,600 or $4,000 is possible if resistance at $3,160 is broken. 

Today, the price of Ether fell to the support at $2,900. The altcoin could fall further to a low of $2,400 if the current support is broken. At the time of writing, the cryptocurrency asset is trading and consolidating above the $2,900 support.

Ethereum Indicator Analysis 

ETH/USD has fallen to the 66 level on the Relative Strength Index for period 14. The cryptocurrency is still in the bullish trend zone and above the midline 50. The daily stochastic value is below the 50% range. It is also in a bearish momentum. The 21-day and 50-day SMAs are pointing north, indicating an uptrend.

Technical Indicators: 

Major Resistance Levels - $4,000 and $4,500

Major Support Levels - $3,000 and $2,500 

What is the next direction for Ethereum? 

Ethereum has been in a downtrend after being pushed back at the recent high. The retracement may have reached bearish exhaustion. Meanwhile, on August 8, the downtrend tested the 38.2% Fibonacci retracement level with a retreating candle. The retracement suggests that Ethereum will fall to the 2,618 Fibonacci extension level or the $2,884.17 level. The price action shows that the cryptocurrency has fallen and retested the Fibonacci retracement level. The market is consolidating for a possible upside move.

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.