Ethereum Is in a Sideways Move as it Fluctuates Below $1,700 HighSeptember 5, 2022
Ethereum (ETH) is in a downtrend, but is making an upward correction. The upward movement has reached the moving average lines.
Ether will regain the overriding resistance at $2,030 if the price breaks above the moving average lines. However, if the largest altcoin turns down from the moving average lines, Ether will fall back to the previous low at $1,424. In the meantime, the coin is moving above the $1,500 support but below the moving average lines. If the largest altcoin recovers, the upward momentum will break out above the moving average lines and the resistance at $1,700. ETH/USD is $1,562 at the time of writing.
Ethereum indicator analysis
The relative strength index for the period 14 is at the level 45. Ether is still in the downtrend zone despite the upward correction. The price of the cryptocurrency is below the moving average lines, which indicates a further decline. The altcoin is above the 40% area of the daily stochastic. It is in a bullish momentum.
Key Resistance Zones: $2,500, $3,300, $4,000
Key Support Zones: $2,000, $1,500, $1,000
What is the next direction for Ethereum?
Ethereum is in an upward correction as it approaches the moving average lines. The altcoin could be rejected at the recent high. Meanwhile, the downtrend from August 20 has shown a candlestick testing the 78.6% Fibonacci retracement level. The retracement indicates that ETH will fall to the level of the 1.272 Fibonacci extension or $1,399. The price action shows that Ether has reversed and is making an upward correction.
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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