Ethereum Risks Further Decline If it Loses $3,200 Support

Today, May 17, Ethereum (ETH) has been in a downward movement since May 12. The biggest altcoin faces rejection at $3,600 as Ether fell to $3,200 low.

Ethereum Price Long-Term Analysis: Bullish

The bulls bought the dips as the altcoin resumed upward. Buyers are making a second attempt to retest the $3,600 resistance. In the first attempt, the bulls were repelled as price fell to $3,200 low. Today, the altcoin is making an upward move to retest the $3,600 resistance.  

A break above the resistance will catapult the coin to retest the $3,900 high. The bullish momentum will extend to retest the overhead resistance at $4,400 high. Conversely, if the bulls fail to break the $3,600 resistance, the bears will take advantage to push altcoin downward. 

On the downside, if the bears break the $3,200 support, Ethereum will further decline to a low of either $3,000 or $2,800. In the meantime, Ether is fluctuating between $3,200 and $3,600 at the writing.

Ethereum Indicator Analysis  

On the daily chart, Ether price fell and found support above the 21-day SMA and the bullish trend line. The altcoin will resume downward if the bears break below the bullish trend line. Ether is at level 54 of the Relative Strength Index period 14. It indicates that the market is in the bullish trend zone and possibly can rise.

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? 

Ethereum is in a downward move. The downtrend is reaching bearish exhaustion. On May 16 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement level. This retracement indicates that Ether will fall to level 1.618 Fibonacci extension or the low of $3,305.38. From the price action, Ether fell to the Fibonacci level and pulled back. The uptrend will resume if the current support holds.

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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