Ethereum (ETH) continued its downward correction after the price met rejection at the high of $3,400. The bulls failed to overcome the recent high as the market reached an overbought region.
The Ether price was rejected at the high of $3,412, but then fell to a low of $3,198 and started a range-bound movement. The largest altcoin is fluctuating in a narrow range between the $3,100 and $3,400 prices. If the Ether price rises back above the $3,100 support, the bulls will break through the $3,400 resistance. The bullish momentum will extend to the high at $3,800. The high at $3,800 is the key resistance. ETH will rally above the moving averages if the resistance at $3,800 is broken. The cryptocurrency will develop upward momentum if the bullish momentum rises above the moving averages or the $4,200 price level. In the meantime, the altcoin is still struggling below the high at $3,400.
Ether is at level 39 of the Relative Strength Index for the period 14. The RSI has remained the same, while the altcoin is fluctuating below the resistance of $3,400. Most importantly, Ether's price is still below the 21-day line and the 50-line moving averages, which makes it vulnerable to a decline. Ether is below the 20% area of the daily stochastic. The market is in the oversold region. It is very likely that buyers will emerge to push prices higher.
Major Resistance Levels - $4,500 and $5,000
Major Support Levels - $3,500 and $3,000
Ethereum is in a fluctuation range between $3,100 and $3,400. The upward movement is expected to resume once the market reaches the oversold area. In the meantime, the uptrend from December 12 has shown a candle body testing the 50% Fibonacci retracement level. The retracement suggests that the Ether will rise to the 2.0 Fibonacci Extensions level or $3,816.
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.