Ethereum Slumps below $4,800 Resistance, Unable to Break Recent High

The price of Ethereum (ETH) is falling after buyers failed to keep it above $4,800 resistance. If buyers manage to break the resistance, Ethereum will rise above $5,000.

However, buyers suffered three setbacks at the recent high. The first two setbacks saw the ETH price fall sharply, but the bulls bought the dips to go back up. Ether is falling after the third resistance at the high of $4,800. If the bears break below support at $4,600 and the bearish momentum continues, the market will fall to a low of $4,350. On the other hand, if the bulls defend support at $4,600 and it holds, the current uptrend will be restored. Today, ETH/USD is trading at $4,667 as of press time.

Ethereum indicator analysis

The largest altcoin has fallen to the 63 level of the Relative Strength Index of period 14. The altcoin is back in an uptrend after the recent setback. The cryptocurrency is in a gentle uptrend as the price finds support above the 21-day moving average line. Ether is below the 80% area of the daily stochastic. The market is in a bearish momentum.

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 moving within a trading range. The cryptocurrency has broken below the 21-day moving average line. Selling pressure will intensify if it falls below the 50-day line, the moving average. Meanwhile, the uptrend from November 12 has a candlestick testing the 61.8% Fibonacci retracement level. The retracement suggests that Ethereum will fall to the 1.618 Fibonacci extension level or $4,347.  

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.

Source: Read Full Article