Ethereum Consolidates above $3,200 Support as Buyers Regroup for a Rebound

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.

Ethereum indicator analysis

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. 

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 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.