Ethereum Revisits Previous Low at $3,160, an Upward Move Is Likely

Today, Ethereum (ETH) has been in a downtrend, failing at its high of $3,450. The largest altcoin has fallen to a low of $3,196.

On two previous occasions, Ether had already fallen this low and then corrected to the upside. Ethereum will resume its upward movement if the current support holds. The upside move will retest resistance at $3,500. However, if the price falls below the 50-day line SMA, selling pressure will resume. The largest altcoin will continue to fall to the low of $3,026. ETH /USD has regained the previous low at $3,160 after the recent collapse. 

Ethereum indicator analysis

Ether is at level 45 of the Relative Strength Index for period 14, indicating that the altcoin is in the downtrend zone and below the midline 50. The price of the cryptocurrency is breaking below the 50-day line SMA. The crypto has fallen below the 20% range of the daily stochastic. The altcoin has reached the oversold zone. 

Technical indicators: 

Major Resistance Levels - $4,500 and $5,000

Major Support Levels - $3,500 and $3,000

What is the next direction for Ethereum?

ETH/USD is in a downward correction as the price falls into the lower price range. The cryptocurrency has fallen into oversold territory in the market. Further downward movement is not expected. Bearish momentum is expected to subside. Buyers are expected to emerge in the oversold region and push the price higher.

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.