Ethereum (ETH) prices have supported a rebound in the trend line and broken through the downward resistance trend line in the past 500 days.After breaking through on September 28th, ETH prices reached a high of $1751 on October 1st, but have since fallen, reflecting the trend in the cryptocurrency market
- Ethereum (ETH) prices have supported a rebound in the trend line and broken through the downward resistance trend line in the past 500 days.
- After breaking through on September 28th, ETH prices reached a high of $1751 on October 1st, but have since fallen, reflecting the trend in the cryptocurrency market.
- The closing price below the long-term upward support trend line will indicate a bearish trend. This may lead to a significant decrease in prices.
Ethereum (ETH) prices have risen in the past 500 days to support a trend line rebound.
Ethereum broke through the short-term downward resistance trend line shortly after its rebound.
Ethereum rebounded at nearly 500 day support levels
The daily time frame chart shows that ETH prices have been rising since September 11th. At that time, it rebounded at the long-term upward support trend line (green icon), which had been in existence for 473 days.
After reaching a higher low, ETH prices broke the short-term downward resistance trend line on September 28th. This breakthrough led to reaching a high of $1751 on October 1st.
However, in the days since then, prices have been falling. Similar declines have also occurred in other areas of the cryptocurrency market.
After prices break through important trend lines, they sometimes return to verify their support level before resuming the previous trend, just like ETH has done so far.
The news on the Ethereum network is mixed. On October 2nd, nine Ethereum Futures Exchange Traded Funds (ETFs) were launched in the United States. However, these funds raised less than $2 million in funds, which deterred market speculators.
In addition, Grayscale has submitted an application to the US Securities and Exchange Commission (SEC) to convert its Ethereum Trust into an Ethereum ETF. Finally, Ethereum founder Vitalik Buterin emphasized the concerns and benefits of adding more features to Ethereum's core software.
ETH Price Forecast: What is the Next Step in Price?
Careful observation of the ETH price trend reveals a significant bullish divergence (green line) in RSI before the Ethereum price rebound.
Market traders use RSI as a momentum indicator to identify overbought or oversold situations and decide whether to accumulate or sell assets.
A reading above 50 and showing an upward trend indicates that bulls still have an advantage, while a reading below 50 indicates the opposite.
When momentum increases and prices fall, there will be a bullish divergence. It usually leads to a reversal of bullish trends, as has been the case with Ethereum so far.
If it continues to rise, ETH may hit the next resistance level of $1820, which is 11% higher than the current price.
Although the ETH price forecast is bullish, closing below the long-term upward support line will invalidate the bullish structure.
In this situation, ETH may fall by 12% to the next long-term support level of $1430.
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