Ethereum Hovering Around $2,900 Support Level, Showing Stability
The price of Ethereum (ETH) is exhibiting a narrow range movement and finding support at the $2,900 level, according to analysis by Coinidol.com. The altcoin has been trading in this range since the downward trend that started on April 13, 2024. While buyers have attempted to push the price above the moving averages, they have been met with selling pressure at the 21-day SMA resistance line, preventing a sustained uptrend.
Currently priced at $2,948, Ethereum is heavily influenced by the battle between bears defending the resistance line and bulls buying the dips at the $2,908 support level. This tug-of-war has resulted in the current range-bound trend. However, if the buyers manage to keep the price above the moving average lines, a positive trend could resume.
The failure to break through the 21-day SMA resistance line on May 6 has led to the altcoin’s consolidation within the current range. Technical indicators show that bearish and sideways trends will persist until the bulls successfully break the resistance barrier. The price bars remain below the 21-day SMA resistance line.
In terms of key levels, Ethereum faces significant resistance at $4,000 and $4,500, while the major support levels are at $3,500 and $3,000. The next direction for Ethereum will largely depend on whether the price breaks out of the current tight trading range, which is bounded by the $2,908 support and the 21-day SMA resistance level.
As mentioned earlier, Ethereum recently fell into the range of $2,908 to $3,122, representing the 21-day moving average line or resistance. However, it remains uncertain whether the altcoin will break through this resistance or continue trending within the current range.
It is important to note that this analysis and forecast reflect the personal opinions of the author and should not be considered as financial advice or a recommendation to buy or sell cryptocurrency. Readers are advised to conduct their own research before making any investment decisions.