Ethereum Consolidates Below $4,200 Resistance Zone, Uptrend Likely

Since October 21, the price of Ethereum (ETH) has been fluctuating below the $4,200 resistance level, and today the largest altcoin is trading at $4,152 as of press time. The price of Ether has stabilised below the recent high.

Every time the cryptocurrency reaches the resistance zone, it is rejected. Essentially, the market is fluctuating between $3,950 and $4,200. On the upside, a breakout above the $4,200 resistance will drive the cryptocurrency above the $4,800 high. However, Ether will face rejection at the high of $4,300. Nonetheless, the current range-bound move will continue if the resistance is not broken. 

Ethereum indicator analysis

Ether has risen to level 63 on the Relative Strength Index for period 14. The largest altcoin has room for an upward movement as it is above the midline 50. The cryptocurrency's price bars remain above the moving averages, indicating a possible upward movement. Currently, Ether is below the 80% area of the daily stochastic. Stochastic bands are fluctuating below and above the 80% area. 

Technical indicators:  

Major Resistance Levels - $4,000 and $4,500
Major Support Levels - $3,500 and $3,000

What is the next direction for Ethereum? 

Ether is in an uptrend but is rejected at the recent high. The uptrend is likely if the resistance is broken. Meanwhile, the uptrend from October 21 has a candlestick testing the 61.8% Fibonacci retracement level. The retracement suggests that Ethereum will rise to the 1.618 Fibonacci Extension level or $4,983.02. 

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.