Ethereum price (ETH) is returning to its previous low and recovering from the support at $1,763. The largest altcoin has broken out above the high at $1,900 and is reaching the previous range zone.
In the previous price action, the bulls failed to overcome the $2,200 resistance zone. Now they have the difficult task of overcoming the 21-day line SMA, which is the next resistance.
If the bulls overcome the $2,200 resistance, ether will rally above the 50-day line SMA. The upward momentum will continue if the bullish momentum is maintained above the moving averages. Conversely, the downward correction will continue if Ether breaks out of the $2,200 resistance zone and moves higher. The largest altcoin will fluctuate between the price levels of $1,900 and $2,200. In the meantime, the cryptocurrency has continued its upward trend.
ETH is at level 39 of the Relative Strength Index for the period 14. The cryptocurrency is still in a downward trend, although it is moving positively. Ether price bars are below the moving averages, which makes it vulnerable to a decline. It is above the 40% area of the daily stochastics. The altcoin has resumed its bullish momentum. The 21-day line and the 50-day line SMAs are sloping downward, indicating a downtrend.
Key resistance levels - $3,500 and $4,000
Key support levels - $2,500 and $2,000
Ether is in an upward correction and testing the previous low. It is approaching the 21-day moving average line, which acts as a resistance line. The altcoin will fall when it encounters resistance at the recent high. 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 1,272 Fibonacci Extension level or $1,370.14.
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.