Ethereum Holds Crucial Support, Retests $1,700 Resistance

Yesterday, Ethereum bulls were retesting the $1,700 high to break above it. The upside momentum was weak as bulls failed to break above the recent high.

A breakout above the $1,700 high will allow buyers to retest or break the $2,000 overhead resistance. Nevertheless, buyers and sellers are still struggling for price possession below $1,700 high. Assuming, the bears have the upper hand, they will break the $1,400 support. This will cause Ether to fall into a deeper correction. Meanwhile, Ether is making an upward move after its rejection at the $1,700 high. The upside momentum will resume if price breaks level $1,700. Otherwise, the cryptocurrency will be compelled to a range-bound move. 

Ethereum indicator analysis  

There is a bullish candlestick above the 50-day SMA. This signals the resumption of an upward move if the 50-day SMA holds. Technically, as price breaks the trend line, the uptrend ought to be terminated. However, Ether is recovering as price attempts to break above the trend line. Ether is at level 49 of the Relative Strength Index period 14. It indicates that there is a balance between supply and demand.

Technical indicators:  

Major Resistance Levels – $2,500 and $2,700

Major Support Levels – $1.800 and $1,600

What is the next direction for Ethereum? 

Ethereum bulls are attempting to break above the $1,700 high. This will push prices upward. The Fibonacci tool analysis is not likely to hold if the selling pressure is exhausted. However, if price breaks below $1,400, the Fibonacci tool analysis will hold. On February 22 downtrend; a retraced candle body tested the 61.8 % Fibonacci retracement level. This retracement indicates that ETH will fall to level 1.618 Fibonacci extensions or a low of $1,266.65  

Disclaimer. This analysis and forecast are the personal opinions of the author that 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.