Ethereum (ETH) prices have reached a long-term upward support line that has existed for nearly 460 days.Although price trends show conflicting readings, RSI has generated bullish signals that may lead to a significant price increase
Ethereum (ETH) prices have reached a long-term upward support line that has existed for nearly 460 days.
Although price trends show conflicting readings, RSI has generated bullish signals that may lead to a significant price increase.
Ethereum prices hit the 460 day upward support line
Ethereum's daily time frame technical analysis provides a mixed interpretation. ETH prices have fallen since reaching an annual high of $2140 on April 16th and reached a lower high on July 14th (red icon).
The downward trend has been ongoing for 148 days, ultimately reaching a low of $1531 on September 11th. Afterwards, prices continued to rise.
Cryptocurrency investment, simplified. Obtain Ethereum (ETH) price forecasts here.
The rebound of ETH is particularly important as it validates the upward support line that has existed since the rise in June 2022.
Since this line has been in existence for a long time, it is expected that once the price reaches there, it will have a strong reaction. Four days later, ETH did reach a high of $1654, but has since slightly declined.
ETH/USDT weekly chart.
The daily RSI is bullish and supports a sustained rise. When evaluating market conditions, traders use RSI as a momentum indicator to determine whether the market is overbought or oversold, and to decide whether to accumulate or sell assets.
If the RSI reading is above 50 and the trend is upward, bulls still have an advantage, but if the reading is below 50, the opposite is true. Although the RSI is still below 50, it is growing with a strong upward trend.
In addition, it has also generated a large number of bullish deviations. This situation occurs when prices decrease and momentum increases in combination. It usually leads to significant upward movement. Although this is consistent with the rebound in the long-term support line, this rise has not yet occurred.
View the 9 best AI cryptocurrency trading robots to maximize your profits.
ETH Price Forecast: Will it sink or float at key support levels?
The shorter six hour time frame indicates that ETH prices are at the intersection of critical levels. On the one hand, trading within the region is supported by prices at a level of $1615. This area has been in existence since August 17th, but there was a deviation (green circle) on September 11th. Deviation and recovery are a bullish signal, and if ETH prices remain above the region, it is expected to lead to a significant increase.
However, the trading price of Ethereum is still below the downward resistance line that has existed since July 15th. Until the price breaks through, this trend cannot be seen as bullish.
Due to the convergence between the line and the support area approaching, a decisive trend is expected to occur soon.
According to the news, the launch of Ethereum's Holesky testing network has been delayed by one week due to parameter mismatches. After testing the online connection, the Denchun upgrade will adjust the mechanism to slow down the ETH pledge rate.
The upgrade is expected to start in late October. Finally, the FTX exchange plans to clear $192 million in ETH tokens.
ETH/USDT six hour chart.
Therefore, the ETH price forecast will depend on whether the price breaks through the resistance line or falls below the support area of the $1615 level. If it breaks through, it may rise by 12% to reach the next resistance level of $1900.
However, falling below the $1615 level will also lead to falling below the long-term upward support line. In this situation, it is expected to decline by 15% to the support level of $1400.
Disclaimer: The content of this article is sourced from the internet. The copyright of the text, images, and other materials belongs to the original author. The platform reprints the materials for the purpose of conveying more information. The content of the article is for reference and learning only, and should not be used for commercial purposes. If it infringes on your legitimate rights and interests, please contact us promptly and we will handle it as soon as possible! We respect copyright and are committed to protecting it. Thank you for sharing.(Email:[email protected])
