Ethereum in Jeopardy as Bears Threaten to Breach the $1,860 Support

Jul 16, 2021 at 08:00 // News
Author
Coin Idol
The bullish momentum may extend above $2,400

For the past 48 hours, Ethereum's (ETH) downward run was halted at the $1,860 low as bulls bought the dips. Ether price corrected higher but was rejected at the $2,040 high. Ether price is now range-bound between $1,860 and $2,040 price levels.

On the downside, the selling pressure would have gone beyond $1,860 if the bears broke below the previous support. That is, the largest altcoin would have fallen to a low of $1,690. Conversely, if buyers break above the $2,040 psychological price level, the cryptocurrency will rally to retest the high at $2,160. Nevertheless, if the bullish momentum extends above $2,400, ETH /USD will be out of the downward correction.

Ethereum indicator analysis  

Ether is at level 39 of the Relative Strength Index of period 14. The altcoin is approaching the oversold region of the market. The cryptocurrency is in the bearish trend zone. Ether is below the 40% area of the daily stochastic. It implies that the market is in a bearish momentum.

ETH_-_COINIDOL_(21).png

Technical indicators: 

Major Resistance Levels - $4,000 and $4,500

Major Support Levels - $2,500 and $2,000 

What is the next direction for Ethereum?

ETH/USD is range bound between $1,860 and $2,040 and the Fibonacci tool has indicated a possible decline in the cryptocurrency. Meanwhile, on July 14 downtrend, a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates that Ethereum will fall to the 1.618 Fibonacci extension level. This is the low of $1,679.42.

ETH_-_COINIDOL_2_chart_(19).png

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.

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