Ethereum Holds Above $2,500. Bulls and Bears Continue Price Battle

Mar 07, 2022 at 15:34 // Price
Coin Idol

Ethereum price (ETH) resumed its downtrend after being rejected at the high of $3,000.

Ethereum price Long-term analysis: bearish

On March 2, the bears broke below the moving averages and reached the low of $2,545. Ether is capable of further downward movement below the moving averages. The current downtrend is due to the fact that the bulls failed to keep the price above the $3,000 resistance level. In the previous uptrend, Ether recovered from the support at $2,570 and rose above the moving averages. The uptrend was rejected at the resistance level of $3,000. On the downside, Ether will retake the low at $2,306 if the selling pressure continues. On the downside, the largest altcoin will rally if the current support holds.

Ethereum Indicator Analysis 

Ether is at the level 40 of the Relative Strength Index for the period 14. It is in a downtrend area and below the midline 50. The price of the cryptocurrency is in a bearish momentum and below the 50% range of the daily stochastic. The moving averages of the 21-day line and the 50-day line are pointing south, indicating a downtrend.

ETHUSD(Daily Chart) - March 7.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? 

ETH/USD is in a downtrend, but the market has reversed since the January 24 plunge. Buyers have failed to keep the price above the high of $3,200. Meanwhile, the downtrend has shown a candle body on January 8, testing the 78.6% Fibonacci retracement level. The retracement suggests that ETH will fall to the 1,272 Fibonacci Extension level or $2,451. Ether has returned above the 1.272 Fibonacci extension level.

ETHUSD(Daily Chart 2) - March 7.png

Disclaimer. This analysis and forecast are the personal opinions of the author 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.

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