Ethereum Remains Stable Above The Crucial Support Of $1,600

The latest price analysis by Coinidol.com report, the Ethereum price (ETH) has returned to the critical support level of $1,600 after the bulls failed to maintain their upward momentum above the high of $1,700.

Long-term analysis of the Ethereum price: bearish

The Aug. 29 rally was short-lived as the altcoin reached an overbought market zone.

Selling activity at the recent high led to a decline in Ether. On the downside, the pair ETH /USD will resume its movement between $1,600 and $1,700. A market decline and retest of the previous low at $1,537 will occur if the bears fall below the existing support. Meanwhile, the altcoin is trading at $1,634 as of press time.

Ethereum indicator analysis

Ether continues to trade above the crucial support at level 36 of the Relative Strength Index for the period 14. It is currently correcting upwards and above the daily Stochastic barrier of 20. At the recent high, the upward momentum is fading.

Technical Indicators:

Key resistance levels – $1,800 and $2,000

Key support levels – $1,600 and $1,400

What is the next direction for Ethereum? 

Ethereum is stabilizing above the $1,600 support level, with price action static due to the existence of doji candlesticks. Since March 27, the current support level has not been breached. This gives the impression that the existing support is likely to hold. However, a price rise above the current support level would indicate the beginning of a new upswing.

Last week Coinidol.com reported that bears repeatedly tried to push Ether to a low of $1,400. Nonetheless, the price rose back above the $1,700 mark, but the upward momentum could not be sustained. 

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.com. Readers should do their research before investing in funds.