Ethereum Recovers but Struggles Below $4,000 Resistance Zone

Following its recent fall to a $3,600 low, Ethereum has risen to a $3,987.90 high. On May 13, the bears tested the $3,600 support to break it but pulled back. The candlestick on that date shows a long tail.

Nevertheless, the bears retested the support on three occasions before the resumption of an upward move. The current uptrend is also facing rejection at the $4,000 resistance zone. On May 13, the bulls retested the $4,000 resistance zone and were resisted.

Ether fell and found support above $3,600 support. On the upside, if buyers succeed in breaking the $4,000 resistance, a retest at the $4400 overhead resistance is likely. Also, if the bulls break the overhead resistance, the market will rally to a new high of $4,800. Conversely, if the bulls fail to break the $4,000 resistance level, the biggest altcoin will resume a range-bound move below the overhead resistance. In other words, the market will fluctuate between $3,600 and $4,000 price levels. 

Ethereum indicator analysis

Ethereum has risen to level 70 of the Relative Strength Index period 14. It indicates that the market has reached the overbought region. Ether may fall if sellers emerge in the overbought region. On the downside, if the price falls and breaks below the trend line, the uptrend may be terminated. The 21-day and 50-day SMAs are sloping upward indicating the uptrend.

Key Resistance Zones: $4,000, $4,200, $4,400

Key Support Zones: $2,000, $1,800, $1, 600 

What is the next direction for Ethereum? 

The biggest altcoin has resumed an upward move as the $3,600 support level holds. The price indicator has indicated an upward movement of prices. On May 10 uptrend; a retraced candle body tested the 61.8 % Fibonacci retracement level. This retracement indicates that ETH will rise to level 1.618 Fibonacci extension. It will reach a high of $4,719.30.  

Disclaimer. This analysis and forecast are the personal opinions of the author that 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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