Ethereum (ETH) continued its downward movement as it fell to the low of $1,181 and retreated. The latest breakdown was a rejection on May 31 at the 21-day line SMA.
The bulls retested the 21-day line SMA on June 6, resulting in a sharp drop below the $1,200 support. Ether price is now fluctuating below and above the $1,200 support.
Selling pressure is likely to ease as the market reaches oversold territory. The largest altcoin is trading below and above the $1,200 support, which is the historical price level from January 2021. In January 2021, Ethereum was in an uptrend and rose to a high of $3,800. Today, Ether is still in a downtrend, but the altcoin has reached an oversold area of the market.
The cryptocurrency is at level 21 of the Relative Strength Index for the period 14. Ether has fallen deep into the oversold area of the market. The market is in a strong bearish momentum. The price bars are far below the moving averages, indicating a downtrend. The largest altcoin is below the 20% range of the daily stochastic. The market has reached the oversold region.
Major Resistance Levels - $3,500 and $4,000
Major Support Levels - $2,500 and $2,000
ETH/USD is in a downtrend as bears are breaking through price support levels. The largest altcoin has fallen into oversold territory in the market. Meanwhile, on May 12 downtrend, a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that ETH will fall to the level of 1.272 Fibonacci extension or $1,369. The price movement shows that Ether has fallen above the Fibonacci extension.
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.