Ethereum Reclaims $4,000 Support, Shows Strength above the Psychological Price Level

Ethereum (ETH) is trading in the downtrend zone. In the last 48 hours, Ether bulls have recaptured the $4,000 psychological price level as buyers push Ether to previous highs.

Today, the market seems to be retreating lower. The retracement could reach the low of $4,055 before a renewed upward move. Currently, buyers have risen above the 21-day moving average line. Likewise, the bulls need to break the 50-day moving average to complete the resumption of the uptrend.

In other words, buyers need to recapture resistance at $4,400. If the bulls are successful, the largest altcoin will regain the high at $4,800. On the other hand, if the bulls fail to overcome the 50-day moving average, Ether will fall and be forced to range bound between the moving averages. In the meantime, the cryptocurrency is on the way down.

Ethereum indicator analysis

Following the relative upward movement, Ethereum has risen to level 49 on the Relative Strength Index for period 14. This indicates that there is a balance between supply and demand. The cryptocurrency's price is now above the 21-day moving average. The altcoin will come out of the downward correction if it stays above the 50-day moving average line. The market is below the 80% area of the daily stochastic. Ether is in a bearish momentum.

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 is in an uptrend. The uptrend is currently encountering resistance at the high of $4,200. The uptrend will continue if buyers break above the $4,200 resistance zone. Meanwhile, the uptrend from December 22 has shown a candle body testing the 50% Fibonacci retracement level. The retracement suggests that Ethereum will rise to the 2.0 Fibonacci extension level or $4,381.45.

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.