The price of Ethereum (ETH) is in a downward correction as the largest altcoin has hit the previous low of $1,763 three times.
In an attempt to break the previous low, the bears retested the current support on May 12, May 27 and June 3, but the bulls bought the dips. The altcoin's upward movement is now capped below the 21-day line SMA. Today, the Ether price is rising but stuck below the 21-day line SMA. On May 30, the altcoin was bumped off at the recent high, but then started to rise again. On the downside, the largest altcoin will fall to the low of $1,370 when the altcoin is rejected at the moving average. On the upside, the market will rally above the 21-day line SMA if Ether rises back above the $1,700 support.
The cryptocurrency is at level 44 of the Relative Strength Index for the period 14. Ether is in a downtrend and trying to break the 21-day moving average line The price bars of Ether are still below the moving averages, indicating a further decline of Ether. The daily stochastic is above the 40% area. The market is in a bullish momentum.
Key resistance levels - $3,500 and $4,000
Key support levels - $2,500 and $2,000
Ether is likely to fall further if the bulls fail to break above the 21-day line SMA. The Fibonacci tool analysis could hold if the current support is broken. Meanwhile, on May 12 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that ETH will fall to the level of 1.272 Fibonacci extension or $1,370.14. Based on the price action, the Fibonacci tool will hold if the previous low is broken.
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.