Ethereum Falls as it Reaches Oversold Region of the Market

Sep 16, 2022 at 10:45 // Price
Coin Idol
Buyers are expected to defend the current support at $1,400

Ethereum price (ETH) is in a downtrend, falling to the low of $1,464.

Long-term analysis of the Ethereum price: bearish

On September 13, the largest altcoin dropped sharply as buyers failed to keep the price above the high of $1,800. Initially, Ether fell to a low of $1,561 as bulls bought the dips. The altcoin retested the 21-day line SMA, confirming the downtrend. At the time of writing, the cryptocurrency has fallen to a low of $1,464. Buyers are expected to defend the current support at $1,400. However, if the bears break support at $1,424, selling pressure could extend to the low at $1,280. However, if the support at $1,424 holds, ETH /USD will be forced into a price range between $1,400 and $1,650.

Ethereum indicator analysis

Ether is at level 39 of the Relative Strength Index for period 14. It is in the downtrend zone due to the decline. The altcoin will continue to decline as the price bars are below the moving average lines. The altcoin is below the 20% area of the daily stochastic. Ether is trading in the oversold region of the market. Selling pressure is likely to ease as buyers emerge in the oversold region of the market.

ETHUSD(Daily Chart) - September 16.png

Technical Indicators

Key resistance zones: $2,500, $3,300, $4,000

Key support zones: $2,000, $1,500, $1,000

What is the next direction for Ethereum? 

Ethereum is still in a downtrend as the price falls below the moving average lines. Meanwhile, the downtrend from August 20 has retraced a candlestick that tested the 78.6% Fibonacci retracement level. The retracement suggests that ETH will fall to the 1.272 Fibonacci extension level or $1,399.03.

ETHUSD(Daily Chart 2) - September 16.png

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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