Ethereum Struggles above $3,500 Support, May Resume Upside Momentum

Ethereum (ETH) price has fallen to $3,500 support and resumed consolidation above it. Ether is unstable as the price fluctuates above the current support. As the market fluctuates, there is a tendency for the price to break the current support.

If the largest altcoin loses the current support, the market will fall to the lows of either $3,440 or $3,365. Currently, Ether’s price is above the moving averages, indicating a possible upside move. If the current support at $3,500 holds, it would signal the resumption of the uptrend. First, buyers will try to break through resistance at $3,700. If this resistance is broken, the Ether price will rise and regain the previous high of $4,000. In the meantime, the altcoin is moving in a range between $3,500 and $3,700.

Ethereum indicator analysis

The cryptocurrency is at level 54 on the Relative Strength Index for period 14, suggesting that the market has entered the uptrend zone and can move higher. Ether is likely to rise as the price is above the 21-day line SMA and the 50-day line SMA. The cryptocurrency is below the 80% range of the daily stochastic. The altcoin 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?

ETH/USD could resume its upward movement if the current support holds. The market will rise if the price bars stay above the moving averages. Meanwhile, the uptrend from September 16 has seen a retracement candlestick testing the 61.8% Fibonacci retracement level. The retracement suggests that ETH will rise to the 1,618 Fibonacci Extension level or $3,870.08.

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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