Ethereum (ETH) Price Analysis: Ethereum Is Facing Rejection at $3,700, May Resume a Downward Correction

Highlights
Ethereum price is likely to retrace to $3,400 low
Ether faces rejection at the high of $3,700 resistance

Ethereum ETH) Current Statistics
The current price: $3,595.65
Market Capitalization: $424,737,779,028
Trading Volume: $22,575,713,894
Major supply zones: $3,000, $3,500, $4,000
Major demand zones: $2,500, $2,000, $1,500

Ethereum (ETH) Price Analysis October 5, 2021
Since October 1, Ethereum’s (ETH) price has been trading in the bullish trend zone. The upward move has been hampered because the market reached the overbought region. The biggest altcoin has been retracing from the recent high. The coin is likely to retrace to the low of $3,400. In other words, the altcoin may retrace to the support above the 50-day SMA. If it does, the uptrend will resume on the upside.

ETH Technical Indicators Reading
Ether is at level 60 of the Relative Strength index period 14. The biggest altcoin is in the uptrend zone and capable of a further upward move. Ether is above the 80% range of the daily stochastic. The daily stochastic bands are sloping downward indicating a downward move. It indicates that the market is in a bearish momentum.


Conclusion
On the 4-hour chart, Ethereum is in a bullish momentum. The bulls broke the initial resistance at $3,500 but were resisted at the $3,700 resistance zone. Meanwhile, on October 2 uptrend; a retraced candle body tested the 78.6 % Fibonacci retracement level. The retracement indicates that Ether will rise but reverse at level 1.272 Fibonacci extension or level $3,611.73. From the price action, the market has retested 1.272 Fibonacci extension and it is resuming a downward move.

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