Ethereum (ETH) prices hit a high of $1865 today, confirming the 190 day downward resistance line.This high point is the highest point of nearly 20% increase in the past 7 days
Ethereum (ETH) prices hit a high of $1865 today, confirming the 190 day downward resistance line.
This high point is the highest point of nearly 20% increase in the past 7 days. Will ETH break through the resistance line?
Ethereum attempts to break through the 190 day resistance level
The daily time frame chart shows that since reaching the annual high of $2141 in April, Ethereum prices have been declining and the resistance line has been continuously decreasing.
After falling to a low of $1521 on October 12th, ETH began to rise and is still ongoing.
Today, the price reached a high of $1865, reaching the trend line of 193 days ago. This is the third breakthrough attempt (red icon).
The daily relative strength index (RSI) supports a sustained rise.
RSI is a momentum indicator used by traders to assess whether the market is overbought or oversold, and whether assets are accumulated or sold.
A reading above 50 and tilting upwards indicates that the bulls still have an advantage, while a reading below 50 indicates the opposite.
The RSI is rising and exceeding 50, both of which are seen as signs of an upward trend. Although the indicator is in an overbought state, it has not generated any bearish divergence that may lead to a decline.
There are some positive news about Ethereum this week
Ethereum's Layer 2 protocol Scroll has started its main network. This extended solution provides compatibility between Ethereum and Ethereum Virtual Machine (EVM) contracts supported by Zero Knowledge Proof.
The privacy agreement Nocturne of the Ethereum blockchain has announced the acquisition of a $6 million seed round financing involving VitalikButerin. NocturneLabs will launch its protocol on the main website in November this year.
If the ETH price increases, FrogNationCFO0xSifu will face liquidation risk. User X requested to increase the price to $1970 to trigger liquidation.
ETH Price Forecast: Can the Price Break Through $3000
Technical analysts use Elliott Wave Theory as a means to identify long-term price patterns and investor psychology, helping them determine the direction of trends.
The number of waves on the weekly time frame is very bullish. It shows that ETH is in the third wave of the long-term five wave upward trend (black) starting in June 2022. The number of sub waves is displayed in white, indicating that ETH is in sub wave 3.
Since the third wave is most likely to extend, if the wave number is correct, the gain can increase rapidly.
Analyst Bluntz_ Capital believes that short-term volatility also shows similar bullish signals, accelerating the rise.
On a weekly basis, the main resistance area is $1950. If ETH breaks through this level, it may rise by 90% to the next resistance level of $3400.
Despite this bullish forecast, breaking below the low point of $1521 for wavelet 2 will invalidate the wave count. In this situation, the ETH price may drop by 30% to the nearest support level of $1200.
(Personal opinions do not constitute suggestions)
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