Ethereum (ETH) prices are approaching the long-term support line of a 450 day high.Although the price trend has declined, RSI has given an upward signal, which previously helped ETH rise by 145%
Ethereum (ETH) prices are approaching the long-term support line of a 450 day high.
Although the price trend has declined, RSI has given an upward signal, which previously helped ETH rise by 145%.
The technical analysis of Ethereum's daily time frame shows a declining price trend. In April, prices deviated above the $2000 horizontal resistance zone (red circle). The failure to maintain this surge is a downward signal. This means that the buyer cannot maintain a high charge, while the seller takes over.
In July, the price reconfirmed the $2000 area as a resistance level (red symbol) and began to continue to decline. So far, ETH has surged after hitting a low of $1550 on August 17th.
ETH is currently approaching the support line of $1500. This line has been forming since the beginning of the entire upward movement in June 2022. More specifically, it measures the slope of a 450 day surge.
However, since November 2022, this line has not been touched (green symbol). Descending to this level is equivalent to a 6% decrease in current prices.
On the other hand, retesting the $2000 area will result in a 24% surge.
ETH/USDT daily chart
According to the news, the grayscale Ethereum discount rate has significantly decreased. The lowest level within the year was 26.64%. This occurred after the Ethereum Fund (ETF) ETF applied for a high.
Ethereum founder V God Buterin stated that despite significant technological advancements, blockchain still has concerns about its privacy, security, and scalability.
Although the price trend has declined, RSI shows a decisive upward trend signal. By using RSI as a momentum indicator, traders can determine whether the market's XEM is overbought or oversold, and decide whether to increase or sell assets.
If the RSI is above 50 and tilted upwards, then bulls have an advantage, but if the RSI is below 50, the opposite is true. On August 17th, RSI decreased by 21, the lowest level since June 2022.
From then on, it rose and formed a high deviation (green line). This is a development of an upward trend, but a downward trend is not supported by momentum. It usually leads to significant upward movement.
In addition, RSI has now moved out of the oversold area. The last time this situation occurred (green symbol), it drove a 145% surge, reaching the current annual high.
ETH/USDT daily chart
Although the price forecast has surged, breaking through the support line for the surge will mean that the trend will still decline. In this case, the price may decrease by another 30% and reach a level of $1100 to support the region.
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