Ethereum (ETH) is bearish and trading above the psychological price level of $1,000. The largest altcoin fell after forming a bearish double top.
Long-term analysis of the Ethereum price: bearish
After failing to break above $1,300 resistance, Ether came under selling pressure again. On December 16, the altcoin fell to a low of $1,157 as bulls jumped on the dips. Since then, Ether has held above the current support level. The current support is the historical price level from November 29. Ether held above the existing support on November 29 and rallied. However, the recovery was stopped at the $1,300 level. If the current support is broken, Ether would fall even further. Ether would then fall back to its previous low of $1,073. At the time of writing, it is trading at $1,188.60.
Ethereum indicator analysis
For period 14, the Relative Strength Index for Ethereum is at 42. As a result of the current decline, Ether is trading in the bearish trend zone. This means that it is vulnerable to a future decline. The price bars are below the moving average lines, which indicates that the altcoin will continue to fall. Ether is in an uptrend above level 40 of the daily stochastic. The 21-day line SMA limits the upward movement.
Key resistance levels – $2,000 and $2,500
Key support levels – $1,500 and $1,000
What is the next direction for Ethereum?
As Ethereum trades above the $1,000 support, it has reached its bearish exhaustion. On December 16, Ether corrected to the upside and the candlestick tested the 78.6% Fibonacci retracement line. After the correction, ETH will fall, but then reverse at the 1,272 Fibonacci extension level, or $1,126.61.
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.
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