Ethereum Holds Above $3,100 And Prepares For A Rally

The price of Ethereum (ETH) reached a high of $3,441 on November 12. The largest altcoin entered the overbought zone when it was rejected at $3,400.

Long-term analysis of the Ethereum price: bullish

Ethereum has retraced from its recent high to the support at $3,100. The retracement stopped above the $3,100 support as Ether started to consolidate again. This suggests that the cryptocurrency could be on its way up. 

On the upside, a breakout above the $3,400 resistance will drive Ether to new highs of $3,800 and $4,100. 

However, selling pressure will set in if Ether falls back and breaks the current support of $3,100 and the price drops to a low above the 21-day SMA or the $2,800 support.

Analysis of the Ethereum indicators

Following the recent price rise, the moving average lines have shifted upwards from their previous horizontal position. The price bars remain above the moving average lines, indicating that the bullish momentum is still present. On the 4-hour chart, the price bars are between the moving average lines, indicating that the cryptocurrency is moving in an intermediate range.

Technical Indicators:

Resistance Levels – $4,000 and $4,500

Support Levels – $3.500 and $3,000

What is the next direction for Ethereum?

The 4-hour chart shows that Ether is bearish but trapped between the moving average lines. When it is trapped between the moving average lines, the largest altcoin will be forced to move in a range. The altcoin will move when the 21-day SMA resistance or the 50-day SMA support is broken.

Last week, Coinidol.com wrote that the positive momentum is likely to reach the $3,400 mark.  

Disclaimer. This analysis and forecast are the personal opinions of the author. They are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol.com. Readers should do their research before investing in funds.