Ethereum Sustains Recent Rallies as Bulls Battle the $3,240 Resistance

Ethereum Sustains Recent Rallies as Bulls Battle the $3,240 Resistance

August 20, 2021

Ethereum (ETH) price has reached a high of $3,240.90 after a successful rally. Today, buyers failed to sustain the bullish momentum above the recent high. Ether is now fluctuating below the recent high.

The largest altcoin has fallen to a low of $3,203 as the market continues to falter. Buyers are trying to push Ether to the previous high of $3,329.70. However, if there is a breakout above resistance at $3,240, a rally to the high at $3,500 is likely. Bullish momentum will extend to the high of $4,000. On the other hand, if the bullish scenario fails, Ethereum will face another rejection that will force it to fall. Ether could fall and regain the previous low at $2,970.

Ethereum indicator analysis

Ethereum is at level 62 on the Relative Strength Index for period 14. The cryptocurrency has fallen into the bullish trend zone and is capable of resuming a new uptrend. The price of the cryptocurrency is above the moving averages, which indicates further upward movement. Ethereum is below the 80% area of the daily stochastic. This suggests that the market is in a bearish momentum.

Technical indicators:

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

Major Support Levels – $3,000 and $2,500

What is the next direction for Ethereum?

The largest altcoin has been in an uptrend since August 19. The uptrend has stalled at the high of $3,240.90. The uptrend will continue if the bulls sustain recent rallies. In the meantime, the uptrend from August 19 has a candlestick that tested the 61.8% Fibonacci retracement level. The retracement suggests that Ethereum will rise to the level of the 1.618 Fibonacci extension or to the level of $3,135.32.

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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