Ethereum (ETH) Nears Attractive Buy Levels: Price Analysis and Outlook

After reaching a local top and price level of $4,760 on Tuesday, an overvalued $ETH price began to fall. More attractive buy levels await below. What’s next for the $ETH price?

$ETH price heads for $4,300 and strong horizontal support

Source: TradingView

Major resistance was retested on Tuesday, which led to an immediate and sharp rejection for the $ETH price. Since that time, $ETH has fallen as much as 9%, with perhaps more to go before buyers start to come in. The signs are that the 0.5 Fibonacci level at $4,300 could be the first place for a potential bounce, but this will likely depend on how the $BTC price is performing. Given that Bitcoin might still fall a bit further, the same could be true for $ETH. The 0.618 golden retracement level may be favourite, although there is even the possibility of a continued dip down to the major horizontal support, which coincides with the 0.786 Fibonacci level.

$ETH bounce soon?

Source: TradingView

The daily chart for the $ETH price illustrates how it is at an important juncture right now. The price is just dipping below the 50-day SMA, but appears to be holding the $4,300 horizontal level as support

The small upward trendline has broken, and today’s candle looks to have confirmed the breakdown. Either the price will bounce from here, or there could be further downside towards the major support

At the bottom of the chart, the RSI indicator is shown to have rejected from the main downtrend line, and has come back to test a shorter descending trendline. Given that this coincides with the 50.00 level and the yellow moving average line, a bounce could be quite likely.

$ETH bull flag forms on higher time frame

Source: TradingView

Zooming out into the weekly time frame a pleasant surprise awaits in the form of a bull flag. It can be seen that the $ETH price has tried to escape the flag both to the upside and to the downside - each time so far proving to be a fakeout, with the price then rejected back inside the flag.

At the bottom of the chart, the Stochastic RSI indicators look to be rapidly descending to the base of the range. It could take at least another couple of weeks or so for them to fully descend. Once they turn back up and pass the 20.00 level, this will signal strong upside price momentum

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.