The price of Ethereum (ETH) has been in a downtrend for three days. The largest altcoin fell sharply from the high of $2,400 to the $2,045 low. Bulls bought the dips as the price moved higher, but were stopped out at the high of $2,160.
This recent high has rejected previous price action. Ether could fall to retake the previous low at $2,045. If the bears break the previous low and retest it, the downtrend will resume. Ether will continue to fall to the low at $1,760. On the other hand, if the previous low holds, the upward momentum will resume. ETH /USD will rise to the previous high of $2,800. The cryptocurrency is trading at $2,092.60 at the time of writing.
The Relative Strength Index period 14 has fallen to level 44. It indicates that the altcoin is in the bearish trend zone and below the 50 midline. Ether is below the 80% area of the daily stochastic. This implies that the market is in a bearish momentum. Ether price is trying to break below the descending channel resistance line. This will accelerate the selling pressure.
Major Resistance Levels – $4,000 and $4,500
Major Support Levels – $2.500 and $2,000
Ethereum is currently moving above the previous low. According to the price indicator, the market will resume upward momentum. Meanwhile, on July 5 uptrend, a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement suggests that Ethereum will rise to the 1.618 Fibonacci Extension level. This is the high of $2,822. 24.
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.