Ethereum (ETH) prices have failed to maintain the increase since September 12th. The horizontal resistance zone of $1650 rejected the price
Ethereum (ETH) prices have failed to maintain the increase since September 12th. The horizontal resistance zone of $1650 rejected the price.
Although the ETH/USD trend still appears bearish, ETH/BTC analysis shows that a reversal of the bullish trend is imminent.
Ethereum prices failed to restore resistance
Due to various reasons, Ethereum price analysis within the daily time range provides bearish readings.
Firstly, prices have fallen below the upward support line that has existed since November 2022. This is considered a bearish signal, indicating that the previous upward trend has ended.
The price trend since the crash has also been bearish. During the decline, ETH fell below the $1650 level support zone that has existed since June 2023.
During the period from August 18th to September 12th, daily RSI generated a bullish divergence (green line). Traders use RSI as a momentum indicator to assess whether the market is overbought or oversold.
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. When price declines are combined with momentum increases, there will be a bullish divergence. This is a bullish signal that usually leads to price increases.
Although ETH is in this situation, the price has not recovered from the $1650 area. On the contrary, the region rejected the price on September 18th (red icon), and ETH has been declining since then.
ETH/USD Daily Chart
If it continues to decline, ETH may fall to the 0.618Fit retracement support level of $1480. However, if it regains the $1650 area, it may increase by 20% compared to the previous upward resistance line of $1900.
It is worth mentioning that Ethereum founder VitalikButerin has transferred 400 ETH tokens to a centralized exchange. This may be a sign that he plans to sell.
However, not all news is negative. Ethereum's daily active addresses exceed 1 million, surpassing Bitcoin (BTC) in the process. In addition, Grey Scale has also submitted an application for the Ethereum Exchange Traded Fund (ETF).
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Will Ethereum reverse the trend of Bitcoin?
However, the decline is also included in the downward wedge and is considered a bullish pattern. The price is approaching the end of the wedge and is expected to have a decisive trend and break through the wedge. Due to the wedge being considered a bullish form, the possibility of a breakthrough is greater.
Finally, there was a significant bullish divergence (green line) in the 3-day RSI. This is another sign of a possible breakthrough in the end.
ETH/BTC 3-day chart.
Therefore, the price analysis of Ethereum remains bearish in the ETH/USD and ETH/BTC currency pairs. However, the latter also shows that the reversal of the final bullish trend is very close. The recovery of the $1650 area means that the ETH/USD trend is now bullish.
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