Ethereum Reaches an Oversold Region, May Resume Upward Above $3,600 Support

Ethereum Price Long-Term Analysis: Bearish
Ethereum (ETH) price has resumed its selling pressure but may resume upward above $3,600 support .The crypto has fallen to the low of $3,606. The largest altcoin has fallen to the oversold region as bulls bought the dips. The current rejection was caused by buyers failing to keep the price above the $4,000 psychological price level. Nonetheless, as the market reaches the overbought region, further selling pressure is unlikely. Ethereum will further decline if the current low is breached. The market will decline to the previous low of December 4 price slump of $3,436. Today, Ether is rising as bulls bought the dips. The cryptocurrency is trading at $3,746 at press time.

Ethereum Indicator Analysis
The crypto’s price bars are below the 21-day line SMA and the 50-day line SMA indicating a possible fall of the altcoin. Ether is currently rising to the upside. Ether is at level 42 of the Relative Strength Index for period 14. The largest altcoin is below 20% area of the daily stochastic. The market has fallen to the oversold region. The selling pressure is likely to end.

Technical indicators:
Major Resistance Levels – $2, 600, $2,800, $3,000
Major Support Levels – $1.500, $1, 300, $1,100

What Is the Next Direction for Ethereum?
Ethereum is trading in the bearish trend zone but may resume upward above $3,600 support. The altcoin is attempting to resume an upward move above the $3,600 support. Meanwhile, on December 11 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates that Ether will fall to level 1.618 Fibonacci extension or $3,434 price level.

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