Over the past week, the Ethereum (ETH) price has maintained its recent rallies as it continues to consolidate below the $3,187 resistance. The Ether price has been fluctuating below its recent high since August 7.
Traders believe that consolidation below a resistance level increases the chances of a breakout. In the latest price action, Ether was dumped at the high of $3,272.20.
A breakout above the recent resistance will catapult the altcoin above the high of $3,300. Nonetheless, the bullish momentum will continue to the upside. On the other hand, if the bulls fail to break through the current resistance, the market will continue to fluctuate between $2,900 and $3,200. In the meantime, the Ethereum price is trading in the overbought territory while the price is rising again. It is unlikely that the altcoin will have enough room to move higher.
With the recent uptrend, the price indicators show the overbought condition of the market. Ethereum is at level 71 of the Relative Strength Index of period 14. Similarly, the altcoin is above the 80% area of the daily stochastic. We expect the appearance of sellers in the overbought region.
Major Resistance Levels - $4,000 and $4,500
Major Support Levels - $3,000 and $2,500
On August 12, Ethereum fell to a low of $2,985 as bulls bought the dips. The largest altcoin has risen to previous highs. Meanwhile, on August 13, the uptrend, a retraced candle tested the 78.6% Fibonacci retracement level. The retracement suggests that Ethereum will rise but reverse at the 1,272 Fibonacci extension level or the $3,185.64 level. The price action shows that the cryptocurrency has retested the Fibonacci extension and is above the recent high.
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.