Ethereum Retests the $4,820 Overhead Resistance as Bulls Recoup Above $4,500 Support

The price of Ethereum (ETH) has recovered from a downward correction as the price broke above the 50-day line and the 21-day moving average line.

Ether rallied to $4,755 but fell back to a low of $4,571 at the time of writing. A strong move above current support will push Ether above the $5,000 price level if bullish momentum continues. However, the upper resistance level has not been breached since May. Buyers were pushed back on November 8 as bulls try to maintain bullish momentum above the overhead resistance. On the other hand, if Ethereum bulls fail to break above the overhead resistance, the altcoin will fall back to the $4,000 low and initiate a range-bound move below the resistance level.

Ethereum indicator analysis

Ether has risen to level 55 on the Relative Strength Index for period 14. The largest altcoin has returned to the bullish trend zone and can continue to move higher. The cryptocurrency price is above the moving averages despite the earlier retracement. This indicates a possible upside price move. Ethereum is above the 25% area of the daily stochastic. The market has resumed its bullish 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?

Ether has resumed its uptrend after buyers maintained bullish momentum above the moving averages. Meanwhile, the uptrend from December 1 has shown a candle body testing the 61.8% Fibonacci retracement level. The retracement suggests that Ether will rise to the Fibonacci extension level of 1.618 or $5,231.11.

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.