Ethereum (Ether, ETH) declines after buyers fail to convincingly break the $2,000 overhead resistance. The bulls broke the overhead resistance twice but could not sustain the bullish momentum.
In the first breakdown, Ether plunged to a low of $1,780. The bulls promptly bought the dips as the biggest altcoin rallied to a $1,975 high. Unfortunately, the upward move was restricted at that level.
After three unsuccessful attempts at the minor resistance, the selling pressure resumed. Ether fell to the previous low at $1,775. After the recent fall, the candlesticks are showing long tails. The candlesticks with long tails indicate there is strong buying pressure at a lower price level. Ether fell to $1,775 support and pulled back. The market may resume upward if the current support holds. Otherwise, the downtrend will resume.
Ether's price has fallen to the support above the 21-day SMA. The uptrend will resume if the 21-day SMA holds. Alternatively, if price breaks below the SMAs, the selling pressure will resume. The altcoin is below the 80% range of the daily stochastic. This indicates that the market has bearish momentum.
Major Resistance Levels – $2,500 and $2,700
Major Support Levels – $1.800 and $1,600
Ethereum is in a downward move after rejection at the $2,000 high. On February 20 uptrend; a retraced candle body tested the 38.2 % Fibonacci retracement level. This retracement indicates that ETH will fall to level 2.618 Fibonacci extensions or a low of $1,480.38.
Disclaimer. This analysis and forecast are the personal opinions of the author and 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.