Ethereum Survives Downward Correction, Reaches Breakout Level above $1,700

Ether price has been falling for the past three days. Today, the market is resuming upward after the recent fall to the low of $1,486.

The fall was consequent upon bulls’ inability to push ETH above $1,760 overhead resistance. The recent fall to $1.486.80 low compelled the bulls to buy the dips as price rose to $1,663 .31 at the time of writing. Ethereum bulls are most likely to retest the $1,760 resistance. 

On the upside, if a breakout occurs at $1,760 resistance, there will be an accelerated price movement. The biggest altcoin will rise to reach the targeted price level of $2,000. Meanwhile, the price has broken above the $1,600 support. Before the recent fall, the price was fluctuating between $1,640 and $1,760. Nonetheless, if the upside momentum fails to resume, Ether may fall and fluctuate in this price range.

Ethereum indicator analysis  

Ethereum upward move is doubtful as the indicators show an overbought region. The market is above the 80% range of the daily stochastic. Ether is at level 63 of the Relative Strength Index. There is a possibility of price fluctuation instead of a rally as prices reach the overbought region.

Technical indicators:  

Major Resistance Levels – $1,800 and $2,000

Major Support Levels – $1.400 and $1,200

What is the next direction for Ethereum? 

The recent rejection has seen the cryptocurrency retrace and find support above $1,600. There is a possibility of a further upward move. On February 5 uptrend; a retraced candle body tested the 78.6 % Fibonacci retracement level. This retracement indicates that ETH will rise to level 1.272 Fibonacci extension or a high of $1,900.83. However, the price will reverse and return to 78.6% Fibonacci retracement where it originated.

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