Ethereum Reaches Oversold Region, Threatens to Fall Below $1,700

The price of Ethereum (ETH) has declined and fallen below the 21-day line SMA. Ether has fallen to the low of $1,712. The current support is the historical price level of July 28.

Ethereum price long-term analysis: bullish

The largest altcoin is likely to hold above the current support. However, if the bears break below the current support, the market will fall to the low of $1,449.

In other words, ETH will fall above the 50-day line SMA. However, if the 50-day line SMA holds, the altcoin will resume its movement between the moving average lines. The cryptocurrency will develop a trend when the moving average lines are broken. For example, if the bears break below the 50-day line SMA, the downtrend will resume. The market will fall to the previous low at $1,029.90. Meanwhile, ETH /USD is trading at $1,735.31 at press time.

Ethereum indicator analysis

Ether is at level 50 of the Relative Strength Index for period 14, indicating that there is a balance between supply and demand. The largest altcoin will continue its movement within a range as the Ether price falls between the moving average lines. ETH /USD is below the 20% range of the daily stochastic. The altcoin has fallen into the oversold zone of the market. Therefore, the selling pressure might ease.

Technical Indicators

Major resistance zones: $2,500, $3,300, $4,000.
Key support zones: $2,000, $1,500, $1,000

What is the next direction for Ethereum?

The Ether price is in a downtrend as the price breaks below the moving average lines. Meanwhile, on August 17 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement suggests that ETH will fall to the level 1.618 Fibonacci extension or $1,746.59. The price action shows that Ether is moving above the 1.618 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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