Ethereum Recovers But Faces Rejection At $1,220 High

Jan 03, 2023 at 08:23 // Price
Coin Idol
The overbought area of the market for Ether has been reached

Ethereum price (ETH) has resumed its uptrend above the $1,100 support.

Long-term analysis of the Ethereum price: bearish

Above the $1,100 support, the price movement was unchanged last week. On December 27, buyers unsuccessfully tried to hold the price above the moving average lines. Currently, buyers are struggling to penetrate the moving average lines. Moreover, the largest altcoin has entered the overbought zone at a high of $1,220. On the upside, the bullish momentum will continue to the high of $1,300 if the bulls break above the moving average lines. On the downside, the current range will remain between $1,100 and $1,240 if buyers are unable to break the previous high.

Analysis of Ethereum indicators  

The Relative Strength Index for period 14 is at 49, which means that supply and demand are in balance. The price bars have dropped below the moving average lines, which has caused the current downturn. Above the stochastic threshold of 40 on a daily basis, ether is in an upward momentum at the 80 level. The horizontal slope of the moving average lines indicates a sideways trend.

ETHUSD(Daily Chart) - January 2.23.jpg

Technical indicators 

Key resistance levels - $2,000 and $2,500

Key support levels - $1,500 and $1,000

What is the next direction for Ethereum?

Although Ethereum is moving sideways, it has recently picked up bullish momentum as it approaches the previous high. As it faces rejection at the high of $1,220, the current bullish momentum has reached its bullish exhaustion. The overbought area of the market for Ether has been reached. If the altcoin is rejected at the recent high, it can resume its sideways movement.

ETHUSD(4 Hour Chart) - January 2.23.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 CoinIdol. Readers should do their research before investing in funds.

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