Ethereum Rallies to $3,840 High as Market Reaches the Overbought Region

The price of Ethereum (ETH) has made huge positive moves on the upside. Today, the price of Ether is fluctuating between $3,824 and $3,840.

The largest altcoin has previously peaked at $3,840, but the bullish momentum has been temporarily interrupted. The uptrend of Ether is doubtful as the market has reached the overbought zone.

If the bulls break the current resistance, the market could go up to $4,000. However, all indicators are pointing to a possible price reversal. On the downside, the market will fall back to the former support above $3,300 if Ether encounters rejection at the high of $3,840.In the meantime, Ether continues to fluctuate below the resistance level.

Ethereum indicator analysis

Ethereum price has risen to the 71 level of the Relative Strength Index of period 14. This means that the cryptocurrency has no room for an upside recovery. Sellers could emerge in the overbought region and push prices down. The altcoin is above the 75% area of the daily stochastic. The market is in the bullish trend zone.

Technical indicators:

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

Major Support Levels – $3,000 and $2,500

What is the next direction for Ethereum?

On the 4-hour chart, the Fibonacci tool shows a possible move in the cryptocurrency. This will depend on whether the resistance at $3,840 is overcome. Meanwhile, the September 1 uptrend has a candlestick body testing the 78.6% Fibonacci retracement level. The retracement suggests that Ethereum will rise to the 1,272 Fibonacci Extension level or $3,962.78.

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 funds.

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