Ethereum’s Decline Persists, Encounters Resistance Near $2,800
The price movement of Ethereum (ETH) is currently undergoing an upward correction following a breakthrough above the 21-day Simple Moving Average (SMA).
In terms of long-term analysis, the momentum was expected to rise towards the 50-day SMA or the $3,000 mark on the daily chart. However, the bullish momentum surpassed $2,800, which was the previous price and support level from April 13. The bears breached the $2,800 support on August 4, leading to a decline to a low of $2,116. Presently, the largest altcoin has made a recovery but remains sandwiched between the moving average lines. If the bulls manage to surpass the resistance at $2,800 and the 50-day SMA, Ether could potentially reach a high of $3,400. Conversely, if the bears breach the 21-day SMA support, Ether might drop to its low at $2,200, with the current trading price standing at $2,685.
Ethereum’s indicator analysis reveals that despite pulling back from its recent high, it is still confined between the moving average lines. On the daily chart, the cryptocurrency’s price has retreated, residing above the 21-day SMA support but below the 50-day SMA resistance, indicating that Ether’s movement is restricted within the moving average boundaries.
In terms of technical indicators, key resistance levels for Ethereum are identified at $4,000 and $4,500, while key support levels are at $3,500 and $3,000.
Looking ahead, Ether has rebounded and reached a peak of $2,800 before experiencing a halt in the upward correction and retracing to the previous low. If selling pressure intensifies and the bears breach the current support level of $2,600, the altcoin could regress to its previous low of $2,200.
It was reported on August 24 that Ether was traded at $2,668. It is essential to note that the analysis and forecast provided are the personal opinions of the author and should not be considered as a recommendation to engage in cryptocurrency trading. Readers are advised to conduct their own research before making any investment decisions.
