Ethereum (ETH) continued to make positive moves after a sharp rebound on July 21. Ethereum bounced above the $1,730 support as the price rose to $2,040.
The largest altcoin made a correction for two days before breaking the initial resistance at $2,040. The current upward movement is likely to extend to the high of $2,200.
However, the continuous upward movement of Ether is doubtful as the market is reaching the overbought region. In the overbought region, ETH /USD will fall to the low of $1,970. Alternatively, if the cryptocurrency breaks out of the $2,200 resistance zone, the bears will take advantage and push Ether to the previous low at $1,720. However, another round of downtrend will resume if the previous low is breached.
Ethereum indicator analysis
Presently, the Ether price is breaking the resistance line of the descending channel. The uptrend will continue if the price breaks through the resistance line and closes above it. Ether is at level 51 of the Relative Strength Index of period 14, which indicates that there is a balance between supply and demand. Ether is above the 80% area of the daily stochastic. This implies that the market is in the overbought zone.
Technical indicators:
Major Resistance Levels – $4,000 and $4,500
Major Support Levels – $2,500 and $2,000
What is the next direction for Ethereum?
The largest altcoin is in an uptrend. Ether price has broken the initial resistance while the market is moving up. Meanwhile, on July 21 uptrend, a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that Ethereum will rise but reverse at the 1,272 Fibonacci extension level or $2,115.97 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 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.
