Ethereum Declines as Bears Resume Selling Pressure below $4,000 Resistance Zone

Ethereum (ETH) bulls failed to recapture $4,000 support as the largest altcoin fell to a low of $3,821. The cryptocurrency could fall further to a low of $3,740 as it is rejected from the high of $3,973.

In similar price action, Ether was rejected as the altcoin hit a high of $4,027. The cryptocurrency fell to a low of $2,656 as bulls bought the dips. The cryptocurrency recovered and resumed a new uptrend. Ether has fallen to support above $3,800 and the cryptocurrency looks to consolidate above that level. If it succeeds, it will continue a new uptrend.

Ethereum indicator analysis

Ether has fallen to the 63 level of the Relative Strength Index of period 14. It is still in the uptrend zone and is capable of resuming the uptrend. Ether is below the 50% area of the daily stochastic. This indicates that the market is in a bearish momentum. However, the stochastic bands are sloping horizontally.

Technical indicators:  

Major Resistance Levels - $4,000 and $4,500

Major Support Levels - $3,500 and $3,000

What is the next direction for Ethereum?

On the 4-hour chart, Ether is falling as the bulls fail to hold above the $4,000 resistance zone. On the daily chart, the cryptocurrency price is above the moving averages. So, there is a prospect of further upward movement in cryptocurrency prices. Meanwhile, on October 16, the downtrend showed a retreating candlestick tested the 61.8% Fibonacci retracement level. The retracement suggests that Ethereum will fall to the Fibonacci extension level of 1.618 or $3,712.

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.