ETH Price Analysis: Struggling to Break Above Resistance
The latest price analysis shows that Ethereum (ETH) has experienced two rallies, but it has yet to surpass the 21-day simple moving average (SMA).
Long-term Analysis: Bearish Outlook for Ethereum
Since July, the 21-day SMA has acted as a resistance line for Ethereum’s price. On August 29, Ether reached a high of $1,748 but was rejected by the 21-day SMA, causing the altcoin to drop to $1,532. Today, Ether recovered and reached a high of $1,645, but once again faced resistance from the 21-day SMA. The future rise of Ethereum remains uncertain, and if it approaches the overbought zone, it is likely to fall and revisit previous lows of $1,514 and $1,494.
Ethereum Indicator Analysis
Ethereum recorded an upward correction and reached a Relative Strength Index (RSI) of 46 for the 14-day period. However, it is still in a downward trend and could continue to fall. The price bars are currently below the moving average lines and are being rejected at the recent high. Additionally, it is below the stochastic level of 80 on a daily basis, indicating sellers in the overbought region.
Key resistance levels for Ethereum are $1,800 and $2,000, while key support levels are $1,600 and $1,400.
What’s Next for Ethereum?
Ethereum is struggling to regain its key support level of $1,600 which has now become a resistance level. The recent high at $1,645 and the 21-day SMA have slowed down its upward movement. If Ethereum fails to overcome this resistance, it is likely to fall back to its previous low. Currently, the altcoin is stuck at the 21-day moving average line.
As we reported on September 11, the 21-day SMA at $1,650 continues to limit Ethereum’s upside. The bearish sentiment makes additional gains unlikely for the altcoin.
Hot Take: Ethereum Faces Resistance at Key Levels
Ethereum has been struggling to break above its key resistance levels and is facing rejection from the 21-day SMA. The altcoin experienced two rallies but has failed to maintain momentum. The future rise of Ethereum remains uncertain, and there is a possibility of revisiting previous lows. The current indicators suggest a bearish outlook, with sellers appearing in the overbought region. Unless Ethereum can overcome its resistance levels, further gains are unlikely for the altcoin.
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