Ethereum Holds Above $2,700 and Reaches Oversold Region

May 02, 2022 at 12:42 // Price
Coin Idol
Ethereum reaches oversold region

The price of Ethereum (ETH) is in a downtrend as the largest altcoin has reached the low of $2,717. The price of Ether has a series of lower highs and lower lows.

Ethereum Price Long-Term Analysis: bearish

Today, the cryptocurrency is trading at $2,840 as of press time. The current upward correction is likely to be rejected at a high of $2,951. In other words, the market will face resistance at the 21-day line SMA. If the bulls break the moving averages to the upside, the market will rise to the highs of $3,000 or $3,500. However, if the altcoin fails to break through the moving averages, Ether will retrace and regain the previous low at $2,717. Nevertheless, the altcoin will continue to fall to $2,447 if the price breaks the current support.

Analysis of Ethereum indicators  

Ether is at level 42 of the Relative Strength Index for the period 14. The largest altcoin is trading in the downtrend zone and is capable of further downward movement. Ether also has a bearish crossover. That is, the 21-day line SMA crosses below the 50-day line SMA, indicating a sell order. The altcoin is below the 20% area of the daily stochastic. This means that the market has reached the oversold area.

ETHUSD(Daily Chart) - May 2.png

Technical Indicators: 

Key resistance levels - $4,500 and $5,000

Key support levels - $3,500 and $3,000

What is the next direction for Ethereum? 

Ether is in a downtrend and has reached its bearish exhaustion. The cryptocurrency is moving above the $2,700 support level. Meanwhile, the downtrend has shown a candle body on April 11, testing the 61.8% Fibonacci retracement level. The retracement suggests that Ethereum will fall but will reverse at the 1,618 Fibonacci extension level or $2,735.61. The price action shows that the market fell to the low of $2,767 and then turned up.

ETHUSD( Daily Chart 2) - May 2.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 funds.

Show comments(0 comments)