Ethereum Loses $4,000 Support as Bears Gain More Grounds

On December 16, Ethereum (ETH) lost the psychological price level of $4,000. Ether is trading at $3,821 at press time, but is fluctuating below the recent high.

The current downturn was formed after the price collapsed on November 26. On November 30, Ether corrected as low as $4,755, but managed to fight back. The price of the largest altcoin began a series of lower highs and lower lows. 

Currently, the bearish pattern is broken as Ether is fluctuating below the high of $4,000. The cryptocurrency has resumed its move above the $3,610 support but below the $4,200 high. ETH/USD will resume the trend if the boundaries of the trading range are broken. Buyers need to break the resistance at $4,400 to resume the uptrend. On the other hand, the altcoin will decline if the sellers break the support at $3,610.

Ethereum indicator analysis  

The Relative Strength Index for period 14 is at 44. The RSI is sloping horizontally as Ether resumes its sideways movement. The market is currently above the 40% area of the daily stochastic. It is in a bullish momentum, but it is unstable as the price fluctuates. The 21-day line and the 50-day moving average line are sloping horizontally.

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 fluctuation range. The altcoin is fluctuating between the $3,610 and $4,200 levels, with price action characterized by doji candlesticks and spinning tops. The market will continue to move within a certain range as long as candlesticks with small bodies dominate the price action. The Ether price is in the middle of the price range.

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.