Ethereum Enters Oversold Territory And Targets The Low At $1,800 An Ounce

Apr 21, 2023 at 14:34 // Price
Coin Idol
Ethereum is in decline and has taken a significant step down

Ethereum price (ETH) crashes as soon as it breaks below the 21-day line SMA.

Long-term analysis of the Ethereum price: bearish

Breaking the 21-day line SMA means that selling pressure has returned. It is likely that Ether will retest the 50-day line SMA or the previous low of $1,800. Selling pressure will stop or subside if the price stays above the 50-day line SMA. At the time of publication, Ether has fallen to a low of $1,920. The price's dip below the 21-day line SMA makes a potential rise doubtful. However, a price spike will take Ether above the $2,000 high. The uptrend will drive the price to a high of $2,200. On the downside, Ether price will oscillate between moving average lines. If the 50-day line SMA is violated, the cryptocurrency price will continue to fall. Ether will fall much more and reach a low of $1,700.

Analysis of Ethereum indicators

Ether has a Relative Strength Index of 50 for the period 14. The price of the largest altcoin has fallen to the equilibrium level, which indicates that supply and demand are in balance. The price of Ether can also change because it is between the moving average lines. The altcoin is now trading in the oversold zone. In other words, it is below the level 20 of the  daily stochastic.

ETHUSD(Daily chart0 - April 21.23.jpg

Technical indicators:

Key resistance levels - $2,000 and $2,500

Key support levels - $1,800 and $1,300

What is the next direction for Ethereum?

Ethereum is in decline and has taken a significant step down. Since April 19, the price of the cryptocurrency has repeatedly tested the support level of $1,900, only to break through it. Ether will fall back to the previous lows of $1,800 and $1,700 if the current support is broken. However, as the market enters the oversold zone, the decline will be limited.

ETHUSD( 4 Hour Chart) - April 21.23.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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