Ethereum (ETH) is in a downward correction and continues its downward movement.
On May 27, the largest altcoin repeated its previous low as it fell to the low of $1,703. Bulls bought the dips as the altcoin corrected upwards. The rejection of the 21-day line SMA has led to Ether being under selling pressure again.
On the upside, further upward movement of the cryptocurrency is limited by the 21-day line SMA. Selling pressure will continue on the downside if the bulls fail to break above the 21-day moving average line. ETH will continue to decline if it falls below the previous low at $1,763. A break below the previous low will push Ethereum to the low of $1,370.
The cryptocurrency is at level 37 of the Relative Strength Index for period 14. Ether is in the downtrend zone, falling for the second time to the previous low at $1,763. Ether price bars are below the moving averages, indicating a further decline in the Ether price. The daily stochastic is below the 40% area. The market is in a bearish momentum. The moving averages are sloping downwards, indicating a downtrend.
Major Resistance Levels - $3,500 and $4,000
Major Support Levels - $2,500 and $2,000
All signs point to Ether resuming selling pressure as it is rejected at the moving averages. Meanwhile, on May 12 downtrend, a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that ETH will fall to the Fibonacci extension level of 1.272 or $1,370.14. Based on the price action, the Fibonacci tool will hold if the previous low is broken.
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.