Ethereum Breaks $3,000 High as the Altcoin Reaches Overbought Region

Ethereum (ETH) is in an uptrend after bulls broke through resistance at $3,000. The largest cryptocurrency is approaching to break the resistance at $3,200.

At press time, Ether is trading at $3,141. Meanwhile, ETH/USD is trading in the overbought region of the market. The altcoin could face rejection at the high of $3,200. In other words, sellers will show up in the overbought region and push prices down. If the bulls overcome the resistance at $3,200, the market will go up to $3,800. Conversely, if Ether is rejected at the recent high, the market will drop to $3,000 or $2,880. In the meantime, Ether has declined from the recent high. At the time of writing, the market has fallen to a low of $3,126.

Ethereum indicator analysis

Ethereum is at level 64 of the Relative Strength Index for period 14. Ether is in the bullish trend zone and is capable of further upward movement. The price of the cryptocurrency is well above the moving averages, which indicates further upward movement of the cryptocurrency. Ether is above the 80% area of the daily stochastic. The market has reached the overbought area. The 21-day moving average line and the 50-day moving average line are sloping upwards, indicating an uptrend.

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?

Ethereum is in an uptrend as the price has risen above the $3,000 resistance level. It is likely that the altcoin will face rejection at the recent high. Meanwhile, the March 22 uptrend has shown a candle body testing the 78.6% Fibonacci retracement level. The retracement indicates that ETH will rise but will reverse at the 1.272 Fibonacci extension level or $3,105.31. The price movement shows that Ether is retreating from the recent high.

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.