Ethereum in Minor Retracement, Battles Resistance at $2,900

Ethereum in Minor Retracement, Battles Resistance at $2,900

June 4, 2021

Ethereum (ETH) faces rejection at the $2,900 resistance which resulted in a downward movement of the crypto. The biggest altcoin fell to the low at $2,550 as bulls bought the dips.

The current downtrend appears to have subsided as the crypto resumes an upward move. Buyers are making another attempt to retest the resistance at $2,900. 

On May 26, Ethereum retested the recent high and was repelled. The altcoin dropped to $2,200 low. On the upside, if the bulls are successful above the resistance level, the market will rally above $3,300 high. The biggest altcoin is likely to be out of downward correction. However, if the bulls fail to breach the resistance, ETH/USD will resume a range-bound move between $2,200 and $2,900.

Ethereum indicator analysis  

The crypto is at level 47 of the Relative Strength Index period 14. The altcoin is in the downtrend zone and capable of falling. Ether price is still below the moving averages which makes it prone to decline on the downside.

Technical indicators:  

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

Major Support Levels – $2.500 and $2,000

What is the next direction for Ethereum? 

The biggest altcoin has exhausted the current downward move as the price consolidates above $2,550 support. Meanwhile, on June 3 downtrend; a retraced candle body tested the 38.2% Fibonacci retracement level. The retracement indicates that ETH will fall to level 2.618 Fibonacci extension or level $2,555.72. From the price action, the market has reversed above the 2.618 Fibonacci extension.

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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