The first week of October is challenging for Ethereum (ETH) as the price of this major cryptocurrency has dropped from $1765 to $1520. The price drop reached 10
The first week of October is challenging for Ethereum (ETH) as the price of this major cryptocurrency has dropped from $1765 to $1520. The price drop reached 10.7% this time, causing all the gains from last month to be erased, bringing the price back to a key support level of $1500. The question now is, can this level of support become the starting point for Ethereum's price rebound and recovery? Let's analyze it carefully.
What is the next step for Ethereum?
Ethereum (ETH) prices have risen by 0.86% in the past 24 hours, currently trading at $1544 and forming a candlestick near the $1530 support level. Neutral candles usually appear after a significant decline, indicating that the downward trend may have slowed down.
On the daily chart of ETH, we can see an upward trend line around the $1500 level, providing additional support for bullish investors. This trend line is part of a larger upward wedge pattern that has guided the recovery of ETH prices for over a year.
If buyers can maintain prices above this dual support area, they may see prices rebound to the level of $1745. In theory, the reversal of the internal downward trend of the upward wedge may drive a rebound in the overall trend line, indicating that the largest counterfeit currency, Ethereum, may exceed $2200, which is the high point of its next recovery cycle.
However, it should be noted that the downward trend of the Bollinger band on the daily chart reflects the strength of the bearish trend. Meanwhile, the Moving Average Convergence Divergence (MACD) shows a downward trend between the blue and orange signal lines, which also reveals the overall tone of ETH's significant decline.
ETH and BTC performance
The price of ETH has been continuously declining, recently dropping to $1522, reaching its lowest level in the past seven months. This indicates that the seller is currently dominant and the market sentiment is declining.
In stark contrast, the price of BTC is relatively stable, with only a slight correction. BTC has successfully maintained its recent volatility support level at around $26500. The difference between ETH and BTC indicates a completely different market sentiment between these two major cryptocurrencies.
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