Ethereum is in a Downtrend, Hovers above the $2,800 Support

The price of Ethereum (ETH) is plummeting after the bulls broke below support at $3,000. The largest altcoin has fallen to the low of $2,856 as of press time. The cryptocurrency is not done with the current price decline.

There could be further setbacks. Over the past two weeks, buyers have slowed the downtrend as the altcoin fluctuated between $3,050 and $3,400. 

Buyers made two unsuccessful attempts to overcome the resistance at $3,400, but without success. However, the bears have the upper hand as they break below the support at $3,000. XRP is falling and could regain the previous low of $2,656. This is the previous low set on September 21, 2021. On September 21, the bears tested support twice before rallying. XRP/USD rose to a high of $4,800. Today, XRP is approaching the oversold area of the market.

Ethereum indicator analysis

Ether is at level 28 of the Relative Strength Index for period 14. The market is now in the oversold region of the market. As buyers emerge in the oversold region, selling pressure will ease. It is not clear if the selling pressure will extend to the previous low at $2,656. Also, Ether is below the 20% area of the daily stochastic. The market is in the oversold region.

Technical indicators:  

Major Resistance Levels - $4,500 and $5,000

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

What is the next direction for Ethereum? 

Ethereum is in a downward movement. The bears have broken the previous trading range and the selling pressure continues. Meanwhile, the uptrend from December 12 has a candle body testing the 61.8% Fibonacci retracement level. The retracement suggests that Ether will fall to the 1.618 Fibonacci extension level or $2,374.

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.