Ethereum Regains Bullish Momentum, Struggles below $4,400 Resistance Zone
Ethereum (ETH) price is now above the 50-day line and below the 21-day moving averages. This suggests that the upside or downside will depend on the break of these moving averages.
About 48 hours later, Ether regained bullish momentum above $4,000 support. Buyers have a tough task ahead to push Ether above the moving averages and retest upper resistance at $4,800. Today, Ethereum broke out above the 50-day moving average. A break above the 21-day line SMA will push ETH to retest the upper resistance at $4,800. On the other hand, if the altcoin is rejected at the recent high, ETH/USD will be forced to range above the 50-day moving average.
Ethereum indicator analysis
Ether is at the 50 level of the Relative Strength Index for the 14 period, indicating that there is a balance between supply and demand. The moving averages are upward sloping, indicating an uptrend. The cryptocurrency has resumed its uptrend. It is above the 80% area of the daily stochastic. The current uptrend is likely to be rejected as the altcoin reaches an overbought area of the market.
Technical indicators:
Major Resistance Levels – $4,500 and $5,000
Major Support Levels – $3,500 and $3,000
What is the next direction for Ethereum?
On the 4-hour chart, Ethereum is back on the upside as the price has risen above the moving averages. The altcoin is facing resistance at the $4,400 level. Meanwhile, the uptrend from November 27 tested the 38.2% Fibonacci retracement level with a retreating candlestick. The retracement suggests that Ether will rise to the 2.618 Fibonacci Extension level or $4,623. From a price perspective, buyers are struggling to continue the current uptrend below the $4,400 resistance zone.
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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