Ethereum Rebounds above $2,800 Support, Attempts to Reach Previous Highs

The price of Ethereum (ETH) is moving positively higher. At the time of writing, the altcoin is trading at $3,116.20. The bullish momentum is likely to extend to the high of $3,200.

Traders should take advantage to place a buy order. If Ether rises to the $3,200 high, it could face resistance. Already, Ethereum is trading and approaching the overbought area of the market. However, if the current uptrend continues past the $3,400 high, the largest altcoin will emerge from the downward correction. The cryptocurrency's price will be above the moving averages, which indicate that the altcoin will continue its upward movement. On the other hand, if the altcoin reaches the high of $3,200, it will be rejected and fall into the range zone. The altcoin will continue its fluctuation between $2,800 and $3,200.

Ethereum indicator analysis

Despite the current upward movement, Ether is at level 48 of the Relative Strength Index of period 14. The market is still in the downward zone and below the midline 50. Meanwhile, the cryptocurrency is above the 80% range of the daily stochastic. ETH /USD is trading in the overbought zone. The current bullish momentum may be fading as sellers will emerge in the overbought region.

Technical indicators:

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

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

What is the next direction for Ethereum?

On the 4-hour chart, Ether is in an uptrend. Meanwhile, the uptrend from September 30 has a candlestick testing the 61.8% Fibonacci retracement level. The retracement suggests that Ethereum will rise to the 1,618 Fibonacci Extension level or $3,213.67.  

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.