Ethereum Price Declines Consolidating above $2000, May Resume Uptrend

The price of Ethereum (ETH) price has fallen to the low of $2,000 as the downtrend has reached bearish exhaustion. The support level above $2,000 has held since April 18.

Ethereum Price Long-Term Analysis: Bearish

Before the recent breakdown, the altcoin fluctuated below the $2,260 resistance for five days. Currently, there are bullish signals above the $2,000 support. The price is consolidating above the current support as bears and bulls contemplate the next move. On the upside, a bounce above the current support will push the cryptocurrency to retest the high of $2,260 or $2,340. Nonetheless, Ethereum has already fallen into oversold territory in the market. Buyers are expected to emerge in the oversold region of the market.

Ethereum Indicator Analysis

Ether is at level 36 of the Relative Strength Index of period 14. It indicates that the market is approaching the oversold region. ETH has fallen below the 20% area of the daily stochastic. This indicates that the market has reached bearish exhaustion. It is likely that buyers will emerge in the oversold region.

Technical indicators:  

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

Major Support Levels – $2.500 and $2,000

What is the next direction for Ethereum?

Ethereum price is consolidating above the $2,000 support, and the Fibonacci tool and price action seem to have settled above the $2,000 support. Meanwhile, on the June 4 downtrend; a retraced candle body tested the 38.2% Fibonacci retracement level. The retracement suggests that ETH will fall to the 2.618 Fibonacci extension level or the $2,005.23 level. From the price action, ETH /USD consolidated above the level 2.618 Fibonacci extension.

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

Source