Ethereum Slumps And Heads For The Crucial $2,400 Support Level

The price of Ethereum (ETH) has slipped below the moving average lines after being rejected at a high of $2,723.

Ethereum price long-term analysis: bullish

Currently, the altcoin has fallen to a low of $2,525 and sits between the moving average lines. 

In other words, Ether is trading above the 50-day SMA support but below the 21-day SMA resistance. Selling pressure will return if the 50-day SMA support is broken. The price slide will reach the critical support level of $2,400 and Ether will fall back to its previous lows of $2,300 and $2,200 if this support is broken. The cryptocurrency will then move sideways.

Furthermore, upside moves will be hindered by resistance at $2,700 and $2,800. Ether's upward momentum will kick in once buyers keep the price above the moving average lines.

Ethereum indicator analysis  

After its recent decline, Ether is trading between the moving average lines. Ether will fall further once it loses the 50-day SMA support. On the other hand, it will resume its uptrend once it breaks above the 21-day SMA barrier. The moving average lines are horizontal and indicate a sideways trend.

Technical Indicators:

Resistance Levels – $4,000 and $4,500

Support Levels – $3.500 and $3,000

What is the next direction for Ethereum?

Ether falls below the moving average lines on the 4-hour chart. The altcoin is on the retreat after retesting the $2500 mark. During the price drop on October 23, the bears broke the $2,500 support and extended the negative trend to a low of $2,379, as Coinidol.com wrote. Today, the bears are aiming to retest their previous low.

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.