Ethereum (ETH) is having an impressive run as the largest altcoin has broken through the $2,200 resistance to reach the $2,400 high.
Ethereum Price Long-Term Analysis: Bearish
In the last 48 hours, buyers struggled to break the $2,200 resistance after a successful rally. Bulls broke through the resistance after two days of correction. However, Ether is facing another hurdle at the $2,400 resistance.
On the upside, Ethereum is likely to face rejection at the $2,400 high. In the previous price action, Ether was rejected twice at the $2,400 high on July 4 and July 7. It is very likely that another rejection will occur as the altcoin is trading in the overbought region of the market. Ethereum may face rejection and decline to $2,300 low.
Ethereum Indicator Analysis
The largest altcoin is above the moving averages. It has broken the resistance line of the descending channel. All this indicates that cryptocurrency is likely to rise to the upside. Ether is at level 61 of the Relative Strength Index of period 14, which suggests that the cryptocurrency has room for an uptrend. Ether is above the 80% area of the daily stochastic. It suggests that the market is in the overbought zone. ETH is likely to fall.
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 will continue the bullish momentum after the retracement. Meanwhile, on July 26 uptrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that Ethereum will rise but reverse at the 1,272 Fibonacci extension level or the $2,464.24 level. The cryptocurrency will reverse and return to the 78.6% Fibonacci retracement level where it originated.
Disclaimer. This analysis and forecast are the personal opinions of the author 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.