Ethereum Approaches Oversold Region And Targets The Low At $1,098

Oct 03, 2022 at 15:13 // Price
Coin Idol

The Ethereum price (ETH) has continued its sideways movement after the recent price drop on September 21.

Last week, Ether traded marginally and fluctuated between $1,220 and $1,400. The cryptocurrency is not yet trending because the presence of indecision candlesticks called doji. 

Long-term analysis of the Ethereum price: bearish

Indecision candlesticks explain the attitude of buyers and sellers about the direction of the market. At the time of writing, Ether is trading at $1,289. Ether will face renewed selling pressure if the price falls below the $1,220 support. The market will then drop further to the low of $1,162 or $1,029. On the upside, if the bulls break through the resistance at $1,400, Ether will resume a new uptrend and regain the previous high of $1,800. 

Ethereum Indicator Analysis

The largest altcoin is at level 38 of the Relative Strength Index for period 14. Ether is bearish as it approaches the oversold area of the market. The altcoin's price bars are fluctuating below the 21-day line SMA. Selling pressure will resume as Ether turns lower from the moving average lines. A break above the moving average lines would signal the resumption of an uptrend. The cryptocurrency is in a bullish momentum as it gets above the 40% area of the daily stochastic.

ETHUSD (Daily Chart) - October 3, 2022.jpg

Technical Indicators

Key resistance zones: $2,500, $3,300, $4,000
Key support zones: $2,000, $1,500, $1,000

What is the next direction for Ethereum? 

 Ethereum is in a downtrend as the price breaks below the moving average lines. On the downtrend on September 21, the price of Ether corrected upwards. The candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that ETH will fall to the 1.272 Fibonacci Extension level or $1,089.85.

ETHUSD (Daily Chart 2) - October 3, 2022.jpg

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 in funds.

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