The price of Ethereum (ETH) is in a downward correction as the largest altcoin has retraced its previous low at $2,301 and is pulling back.
Ether resumed its downward correction after buyers failed to sustain bullish momentum above the moving averages on February 28. Ether was pushed back at the $3,000 resistance level and fell to the low of $2,400, with buyers pushing the altcoin to retest or break above the moving averages.
ETH/USD will continue its downward movement if it is rejected at the moving averages. The altcoin will fall back to the current support at $2,301. If the bulls break above the moving averages and the bullish momentum continues, Ether will come out of the downward correction. The largest cryptocurrency will resume its upward momentum when the price breaks the resistance at $3,200. Today, Ether is trading at $2,593 at press time.
The largest cryptocurrency has fallen to level 45 on the Relative Strength Index for the 14 period. Ether is in a downtrend area and below the 50 midline. The altcoin is vulnerable to a downside move if it continues to trade in a downtrend. Ether is below the 20% range of the daily stochastic. Buyers are emerging from the oversold area to push the altcoin higher.
Major Resistance Levels – $4,500 and $5,000
Major Support Levels – $3.500 and $3,000
ETH/USD is still trading below the moving averages but above the crucial support at $2,301. Ether is risking a further decline below the $2,301 support. Meanwhile, the January 9 candlestick downtrend has tested the 78.6% Fibonacci retracement level. The retracement suggests that ETH will fall to the 1,272 Fibonacci Extension level or $2,439. Ether price is moving above the 1,272 Fibonacci Extension 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.