Ethereum Rally Stalls at $2900 High, Resumes Sideways Move below Resistance

Recently, on May 23, Ethereum recovered above $1,755 support. The recovery propels the altcoin to reach the previous highs. However, the uptrend was stalled at the $2,900 resistance. Buyers could not sustain the bullish momentum above the $2,900 high.

Consequently, Ether fell after bulls were resisted thrice. The downtrend extended to the low of $2,400 as the altcoin found support above it. The $2,400 was the support of the previous uptrend. Nevertheless, if this support holds, Ethereum will rise and retest the $2,900 resistance. Conversely, if the selling pressure resumes and bears break the support at $2400, Ether will decline to the previous low at $1,755.

Ethereum indicator analysis  

The altcoin is at level 43 of the Relative Strength Index period 14. It is still in the downtrend zone and below the centerline 50. Ether price was repelled at the resistance of the descending channel. If the price breaks and closes above the resistance line, the uptrend will resume.

Technical indicators:  

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

Major Support Levels – $2.500 and $2,000

What is the next direction for Ethereum? 

Ethereum resumes a fresh downtrend as it faces rejection at the $2,900 high. Meanwhile, the Fibonacci tool has indicated a downward movement of the coin. On May 27 downtrend; a retraced candle body tested the 38.2% Fibonacci retracement level. The retracement indicates that ETH will fall to level 2.618 Fibonacci extension or level $2,234.76. 

Disclaimer. This analysis and forecast are the author’s personal opinions 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.