Ethereum Makes Sharp Fall at $2,000 Overhead Resistance

Despite a rebound above $1,700 support and subsequent breaking of the $1,800 resistance, the $2,000 overhead resistance could not be breached. Today, Ether prices are falling along with Bitcoin. The biggest altcoin was repelled after reaching a high of $1,928.30.

After an initial drop to $1,840, the price retested the $1,880 high to resume the downtrend. The ETH/USD has declined to $1,770 support at the time of writing. The current downward move may reach a low of $1,700. The bulls may buy the dips if the price falls above $1,700. This will allow buyers to push the price and retest the $1,800 resistance. Subsequently, a retest at the $2,000 overhead resistance is possible. Further upside movement of price is possible once the overhead resistance is breached.

Ethereum indicator analysis  

Ethereum is below the 40% range of the daily stochastic. The altcoin is in bearish momentum. Ether price is above the 21-day and 50-day SMAs which indicates a possible rise in price. The price is at level 54 of the Relative Strength Index period 14. It indicates that price has room to rally on the upside.

Technical indicators:  

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

Major Support Levels – $1.500 and $1,300 

What is the next direction for Ethereum? 

Ethereum is on a downward move. The selling pressure may have been exhausted. The Fibonacci tool has earlier indicated a possible move on the upside and subsequent reversal. On March 10 uptrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that ETH will rise to level 1.272 Fibonacci extension or the high of $1,993.48. Ether is to reverse and return to 78.6% Fibonacci retracement level where it originated. Today, the price action has confirmed this level and the upward move is likely.

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.