The price of Ethereum (ETH) has continued its downward movement after the price fell below the moving averages. This break signals further selling pressure to the low of $3,098.
The current decline pushes the altcoin into the oversold region. In the oversold region, selling pressure is unlikely to continue as buyers are likely to emerge to push prices higher. However, in a market with a strong trend, the oversold condition may not last. Today, a bullish candle is showing above the current support. Ether will continue its upward movement and retest resistance at $3,500 if current support holds. Further downside is unlikely as the market has reached the oversold region.
The price of the cryptocurrency broke below the moving averages as Ether retraced to the previous low. In the previous price action, the market fell to the low of $3,000. The altcoin is at level 43 of the Relative Strength Index of period 14, which indicates that ETH /USD is in the downward zone and can fall downwards. The cryptocurrency value is below the 20% range of the daily stochastic. The altcoin has fallen into an oversold area of the market.
Major Resistance Levels - $4,500 and $5,000
Major Support Levels - $3,500 and $3,000
On the 4-hour chart, ETH /USD has fallen into oversold territory. The price has broken below the previous low at $3,205, making another low. Meanwhile, on September 17, the downtrend has seen a retracement candlestick testing the 61.8% Fibonacci retracement level. The retracement suggests that ETH will fall to the 1.618 Fibonacci extension level or the $3,149 level. Ether is expected to hold this level and continue its uptrend.
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.