Ethereum oversold, threatening $1,700

The price of Ethereum (ETH) has plummeted and slipped below the 21-day line SMA. Ether has plummeted to the low of $1,712. The present support is the historical price level of July 28.

Ethereum price long-term analysis: optimistic

The largest altcoin is likely to hold above the current support. However, if the bears breach below the existing support, the market would tumble to the low of $1,449.

In other circumstances, ETH will fall above the 50-day line SMA. However, if the 50-day line SMA holds, the cryptocurrency will repeat its swing seen between trend line lines. The cryptocurrency will form a trend when the daily average lines are violated. For example, if the wolves break underneath the 50-day line SMA, the downward will commence. The market will fall to the previous low of $1,029.90. Meanwhile, ETH /USD is trading at $1,735.31 at press time.

Ethereum indicator analysis

Ether is at level 50 on the Relative Strength Index for period 14, showing that there is a balance between both supply and demand. The strongest altcoin will continue its movement inside a range as the Ether price falls between the moving average lines. The daily stochastic shows that ETH/USD is currently trading below the 20% area. The alternative cryptocurrency’s price has reached an oversold level on the market. As a result, there may be a reduction in the amount of pressure to sell.

Technical Indicators

Major resistance zones: $2,500, $3,300, $4,000.

Principal areas of support: $2,000, $1,500, and $1,000

What should we expect from Ethereum moving forward?

The price of Ether has broken below its moving average lines, indicating that a downward trend is currently in effect. While everything was going on, the downturn continued on August 17 and a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement gives the impression that ETH will drop to the level 1.618 of the Fibonacci extension, which is equivalent to $1,746.59 in USD. According to the price movement, Ether is currently trading higher than the 1.618 Fibonacci extension level.