On August 28, Ethereum (ETH) fell to a low of $1,424 as bulls bought the dips. The biggest altcoin is in an upward correction after the recent decline.
The cryptocurrency may have exhausted the downside move as it has regained the previous lows from July 26. During the price action on July 26, the bulls bought the dips as the altcoin returned to the previous highs.
Today, Ether is consolidating above the current support for a possible upside move. To the upside, Ether will regain momentum if buyers keep the price above the resistance at $1,700. In other words, if the price rises above the moving average lines, Ether will resume its uptrend. Conversely, selling pressure will resume if the altcoin turns away from the 50-day line SMA. Ether will then drop further to $1,274.50.
Ethereum indicator analysis
Ether is at level 35 of the Relative Strength Index for the period 14. Ether is in a downtrend and approaching oversold territory. The altcoin is above the 25% area of the daily stochastic. The altcoin is in a bullish momentum. Ether’s price bars are below the moving average lines, indicating a possible decline in Ether.
Key Resistance Zones: $2,500, $3,300, $4,000
Key Support Zones: $2,000, $1,500, $1,000
What is the next direction for Ethereum?
Ethereum is risking a possible downside move as the price is below the moving average lines. On the downtrend from August 20, a candlestick tested the 61.8% Fibonacci retracement level. The retracement suggests that ETH will fall to the Fibonacci extension level of 1.618 or $1,238.97.
Disclaimer. This analysis and forecast are the personal opinions of the author and 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 in funds.