Ethereum Slumps to $3,600 Low, Builds Strength on Current Support

The price of Ethereum (ETH) has fallen into the zone of downtrend after regaining the previous low of $3,606. The largest altcoin is correcting higher but risks further selling pressure at the recent high.

At press time, the altcoin has reached a high of $3,803. However, Ethereum has been hovering between $3,600 and $4,100 since the December 4 plunge. 

Over the past three weeks, the trading range has remained unbroken. For example, if buyers break through resistance at $4,100, the market will rally to the high at $4,200. A break above $4,200 resistance will catapult ether to a resumption of upward momentum. On the other hand, if the bears break below the $3,600 support, the market will fall to a low of $3,436.

Ethereum indicator analysis

Ether's price bars are below the 21-day line SMA and the 50-day line SMA, indicating a possible downside move. Ethereum is also in the downtrend area at level 42 of the Relative Strength Index for the period 14. The market is below the 20% area of the daily stochastic. Ether has fallen into oversold territory as the market has reached bearish exhaustion.

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?

ETH/USD has resumed a downward movement after the recent rejection. Meanwhile, the downtrend from December 11 has shown a candle body testing the 61.8% Fibonacci retracement level. The retracement suggests that Ether will fall to the 1.618 Fibonacci extension level or the $3,439.58 price 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.