Ether Struggles Above $3,800 As It Reaches An Overbought State

Mar 07, 2024 at 00:26 // Price
Coin Idol

The price of Ethereum (ETH) has retested the $3,800 resistance twice as buyers try to sustain the upside momentum above this level.

Long-term analysis of the Ethereum price: bullish

Buyers are planning to push the largest altcoin to a high of $4,000. On March 5, Ether tested resistance around $3805, but then quickly fell to a low of $3,200. Bulls immediately bought the dips, and Ether returned to a high of $3,830 at the time of writing.

The extended candlestick tail on March 5 indicates significant buying pressure near the $3,200 support level. The bulls have tested this obstacle for the second time. On the upside, if buyers maintain their bullish momentum, Ether will rally to a high of $4,000. On the downside, Ether would have fallen further if the $3,200 support or the 21-day SMA were breached. Ether will reach a low of $2,735.

Analysis of the Ethereum  indicators

After the recovery, Ether's price bars are now above the moving average lines. This has led to a rise in Ether. The cryptocurrency is overbought as buyers are unable to reach the recent high of $3,800. The moving average lines are consistently sloping north, indicating an uptrend.

Technical indicators:

Key resistance levels – $3,400 and $3,800

Key support levels – $3,000 and $2,600

ETHUSD_(Daily Chart) –March 6.jpg

What is the next direction for Ethereum?

Ether's price has hit resistance twice at $3,800 and buyers are struggling to maintain positive momentum. Currently, Ether is trading between $3,200 and $3,800. The digital asset has held above the $3,800 mark. The uptrend will continue if the existing support holds.

ETHUSD_(4-hour Chart) – March 6.jpg

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 Readers should do their research before investing in funds.

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