On January 22, the price of Ethereum (ETH) collapsed to a low of $2,301 and resumed consolidation above current support. Since the January 22 price break, the upside has been capped below the high of $2,600.
This is an indication that selling pressure may resume if the largest altcoin loses the $2,300 support. In the meantime, Ether is fluctuating between the $2,300 and $2,600 levels, and if buyers break the initial resistance at $2,600, Ether will rally to $3,450. If the bears break the support at $2,300, the market will fall to $2,050 or $1,721. At press time, the largest altcoin is trading at $2,380.50.
Ether is below the 20% area of the daily stochastic. The market has reached the oversold region of the market. The Ether price is oversold as the altcoin fluctuates above the current support. Buyers are expected to emerge in the oversold region.
Major Resistance Levels - $4,500 and $5,000
Major Support Levels - $3,500 and $3,000
Ethereum is pausing above the $2,300 support as the bears continue to try to retest the support level. Meanwhile, the downtrend from January 10 has shown a candle body testing the 78.6% Fibonacci retracement level. The retracement suggests that ETH will fall to the 1,272 Fibonacci Extension level or $2,486.29.
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.