Ethereum (ETH) is trading above $3,100 support as bulls struggle to maintain upward momentum. After the last downward impulse, the Ether price is unstable and fluctuates between $2,600 and $3,200.
Today, the largest altcoin is likely to fall as it is rejected at the resistance zone at $3,200. This is the second time it has been rejected at the recent high. However, the bears also retested the support zone at $2,600 three times but were rejected. This has contributed to the price currently hovering between $2,600 and $3,200. If the price breaks above $3,200, a rally above $3,400 is likely. This will push the altcoin to resume its upward momentum. On the other hand, if the cryptocurrency encounters strong resistance, the downtrend will resume.
Ether's price has risen to the level 47 of the Relative Strength index period 14. The altcoin is still in the downtrend zone and below the midline 50, which makes it vulnerable to a downtrend. Ether is showing a bearish crossover as the 21-day line SMA crosses the 50-day line SMA. This is a sign of a sell signal. The altcoin is above the 40% area of the daily stochastic. This indicates that the market is in a bullish momentum.
Major Resistance Levels - $4,500 and $5,000
Major Support Levels - $3,500 and $3,000
Ethereum is trading in the bearish trend zone. The Fibonacci tool has indicated another downward move. Meanwhile, on September 7, the downtrend showed a retraced candlestick testing the 50% Fibonacci retracement level. The retracement suggests that ETH will fall to the 2.0 Fibonacci extension level or the $2,078.34 level.
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.