Ethereum Reaches Bearish Exhaustion, Finds Support above $2,300

Ethereum (ETH) price has been in a downward move for the past four days. The biggest altcoin has fallen and it is approaching the previous low at $2,300.

The previous low at $2,300 has been holding since June 8. The bears will be retesting the support for the third time. The bulls buy the dips each time the support is retested. For instance, on June 12, the bulls bought the dips as the market rallied to a $2,640 high. 

On the upside, buyers are finding penetration difficult at the $2,600 resistance. Certainly, a break above the $2,600 resistance will catapult the crypto to retest the $2,900 high. Nevertheless, if buyers overcome the $2,900 resistance, Ethereum will be out of downward correction. Perhaps, the altcoin will begin resumption of an upward move. Meanwhile, Ether has fallen into the oversold region, retesting the previous low. The crypto is likely to make an upward move as buyers are expected to emerge. ETH/USD will continue to be range-bound if these range-bound levels remain unbroken.

Ethereum indicator analysis  

Ether is at level 42 of the Relative Strength Index period 14. It indicates that the market is in the downtrend zone and below the centerline 50. The crypto is capable of falling on the downside. Ether has fallen below the 20% range of the daily stochastic. It indicates that the market has reached bearish exhaustion. Buyers are likely to 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 in a downward move. The Fibonacci tool has indicated a possible reversal of the altcoin. Meanwhile, on June 8 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that ETH will fall to level 1.272 Fibonacci extension or level $2,316.21. The market is expected to reverse at a level of $2316.21.

Disclaimer. This analysis and forecast are the author’s personal opinions, 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.

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