Ethereum (ETH) is in a downward correction and fluctuating in a tight range below the moving averages. On May 30, bulls tried to break out above the 21-day line SMA but were rejected. The largest altcoin has declined and is forced to trade between $1,703 and $1,875.
At the time of writing, Ether is trading at $1,778. If the bears break the support at $1,703, the altcoin will fall to the low of $1,370. On the other hand, if the current support holds, Ether will break out above the 21-day line SMA and rally above the 50-day line SMA. ETH/USD will resume its upward momentum if buyers keep the price above the moving averages. Meanwhile, Ether is moving above the $1,703 support but below the 21-day line SMA.
The cryptocurrency is at level 37 of the Relative Strength Index for period 14. Ether is in the downtrend zone as the cryptocurrency fluctuates in a narrow range. As long as the price bars are below the moving averages, Ether can go down. Ether is below the 40% range of the daily stochastic. The market is in a bullish momentum.
Major Resistance Levels - $3,500 and $4,000
Major Support Levels - $2,500 and $2,000
The largest altcoin is consolidating above the current support. There is a probability that the price will break down or rise again in the near future. The Fibonacci tool will hold if the current support is broken. Meanwhile, on May 12 downtrend, a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that ETH will fall to the level of the Fibonacci extension of 1.272 or $1.341.
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.