Ethereum Breaks Below $2,447 Support as Bears Target the $2,306 Low

May 09, 2022 at 13:30 // Price
Coin Idol
Ether will see a rally that will catapult it to the previous highs

Ethereum (ETH) has fallen back to its previous low of March 7. On March 7, the second largest cryptocurrency fell to the low of $2,447 and then recovered. Today, the Ether price has fallen and is hovering above the $2,425 level.

However, if the altcoin holds above the $2,425 support, Ether will see a rally that will catapult it to the previous highs. However, if the bears manage to break below the $2,425 support, Ether will continue to fall back to the previous lows set on February 24. Meanwhile, the largest cryptocurrency has reached the oversold zone of the market. Further downward price movement is unlikely.

Ethereum indicator analysis

Ether has fallen to the 32 level of the Relative Strength Index for the 14 period. The cryptocurrency is in the downtrend zone and is approaching the oversold region at the level of the price indicator. In the oversold region, buyers will take control of the prices. At the same time, the altcoin is below the 20% area of the daily stochastic. Ether is already in the oversold region of the market. 


Technical indicators:  

Major Resistance Levels - $4,500 and $5,000

Major Support Levels - $3,500 and $3,000

What is the next direction for Ethereum?

Ethereum's downside has been exhausted as the largest altcoin retested the previous low from March 7. Ether is now moving above the $2,425 price level. Meanwhile, the downtrend has shown a candle body on April 25 testing the 50% Fibonacci retracement level. The retracement suggests that ETH will fall to the 2.0 Fibonacci extension level or $2371. 


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.

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