Ethereum Is in a Downward Correction below $3,990, Risks a Possible Decline

Following a successful rally, the price of Ethereum (ETH) has fallen from $4,027 to $3,950. The current price level will likely continue to fall unless resistance is broken.

Moreover, the largest altcoin has been trading in the overbought zone for five days. ETH /USD is in a downward correction as the price fluctuates between $3,860 and 3,990. The uptrend is likely to continue if the price rises above the high of $3,990. If ETH/USD encounters rejection at the high of $3,990, selling pressure will resume and the price will fall to the low of $3,860. Ether will continue to fall to $3,780 if the current support is broken. Currently, the cryptocurrency is trading at $3,950.

Ethereum indicator analysis 

Ethereum price is still at the 72 level of the Relative Strength Index of the period 14, which means that sellers could appear in the overbought region to push prices lower. The altcoin is above the 40% area of the daily stochastic. The market is in the bullish trend zone.

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?

On the 4-hour chart, Ethereum is in a downward correction. The cryptocurrency continues to fluctuate below the $4,027 resistance level. Meanwhile, the September 3 downtrend has shown a candlestick testing the 61.8% Fibonacci retracement level. The retracement suggests that Ethereum could fall to the 1.618 Fibonacci extension level or the $3,773 39 level.

Disclaimer. This analysis and forecast are the personal opinions of the author 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.