The price of Ethereum (ETH) has dropped as the altcoin falls into its range bound zone. Price analysis by Coinidol.com.
Long-term analysis of the Ethereum price: bearish
The largest altcoin has been in a range bound movement since the downtrend on April 13, 2024. The altcoin is in a range-bound move, above the $2,908 support but below the moving average lines. On the upside, buyers have failed to sustain the price above the moving averages. This is due to the continued selling pressure at the 21-day SMA resistance line.
The bears have defended the 21-day SMA resistance line, which has hindered the cryptocurrency’s uptrend. Ether will resume its positive trend if the buyers keep the price above the moving average lines. In contrast, the bulls have defended the current support level of $2,908. Every time the bears break the existing support, the bulls buy the dips, resulting in the current trend that is range-bound. Meanwhile, Ether is currently worth $2,948.
Analysis of the Ethereum indicators
Ether has fallen into its current price range after failing to break the 21-day SMA on May 6. The 21-day SMA resistance line has resisted any upward momentum. Bearish and sideways trends will come to an end once the bulls break through the 21-day SMA barrier. The price bars are below the resistance line of the 21-day SMA.
Technical indicators:
Key resistance levels – $4,000 and $4,500
Key support levels – $3,500 and $3,000
What is the next direction for Ethereum?
Ether is currently trading within its range after being rejected at the 21-day SMA. On May 10, the negative trend broke the current support, but the bulls bought the dips as the altcoin rallied above it. Ether is now trading in a tight range between the support at $2,908 and the 21-day SMA resistance level. A rally or breakout will break the current tight trading range.
As Coinidol.com reported last week, the price of Ethereum has fallen to the range of $2,908 to $3,122, which is the 21-day moving average line or resistance.
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.com. Readers should do their research before investing in funds.
