Ethereum Risks Decline As It Faces Sharp Rejection At $3,500

The price of Ethereum (ETH) is on the verge of entering the positive trend zone. On July 15, the altcoin rose to a high of $3,500 before being rejected.

Long-term analysis of the Ethereum price: bearish

Buyers failed to sustain the bullish momentum above the 50-day SMA resistance and the $3,500 high. Today, the bulls are desperately trying to break the barrier at the recent high. On the upside, Ether will hit a high of $3,730 if buyers keep the price above the $3,500 resistance. If the largest altcoin fails to break above the recent resistance, we could see a decline. 

Now the uptrend has paused around the 50-day SMA. The bears have put up strong resistance recently. Ether will fall and settle between the moving average lines.

On the other hand, it will fall and return to the previous low above the 21-day SMA or the $3,250 support. The largest altcoin is valued at $3,435 at the time of writing.

Analysing the Ethereum indicators

The bulls are still trying to break the barrier at the 50-day SMA. The bulls have retested the recent resistance three times while the crypto price has fluctuated below its previous high. Ether price is now fluctuating between the moving average lines. The altcoin will continue its trend once the 21-day and 50-day SMAs are broken.

Technical Indicators:

Key Resistance Levels – $4,000 and $4,500

Key Support Levels – $3.500 and $3,000

What is the next direction for Ethereum?

On the 4-hour chart, Ethereum is trading above the 21-day SMA support but below the $3,500 resistance level. The altcoin has fallen back above the 21-day SMA support as buyers failed to sustain the uptrend. Selling pressure on Ether will continue if the price falls below the 21-day moving average line.

On July 16, Coinidol.com reported that the price of Ethereum (ETH) regained upward momentum, breaking through the 21-day SMA and reaching a high of $3,378.

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