Ethereum Holds Firm above $3,000 Support, Pushes on the Upside

On January 10, Ethereum (ETH) plunged to a low of $2,930 as bulls bought the dips. The upward movement was stopped at the high of $3,400. The price level of $3,400 was the previous support from October 11.

On October 11, the support level was held when the market reached the high of $4,800. If buyers break the $3,400 high today, the market will rise to $3,800. The biggest altcoin will come out of the downward correction if the bullish momentum goes beyond the high at $4,200. However, Ether has fallen back to the low at $3,200 after the rejection. On the downside, the correction will continue between $3,010 and $3,400 if buyers fail to break the recent high. ETH/USD is trading at $3,266 as of press time.

Ethereum indicator analysis

Ether is at level 38 of the Relative Strength Index for the period 14. The altcoin is in the downtrend zone, but no longer in the oversold zone. Ether is above the 25% area of the daily stochastic. The cryptocurrency has resumed its bullish momentum. Ether's price is below the 21-day line and the 50-day moving averages, indicating that the altcoin is in a downward correction. 

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 is in a downtrend. The altcoin's uptrend is encountering resistance at the high of $3,400. Meanwhile, the uptrend from January 13 has a candle body testing the 61.8% Fibonacci retracement level. The retracement suggests that Ethereum will rise to the 1,618 Fibonacci Extension level or $3,714.61. 

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.