Ethereum Price Fails to Reclaim Resistance
The price of Ethereum (ETH) was unable to sustain its increase that began on September 12, as it was rejected by the $1,650 horizontal resistance area. While the trend for ETH/USD still appears bearish, the analysis of ETH/BTC suggests that a bullish trend reversal may be on the horizon.
The Bearish Reading in the Daily Time Frame
An analysis of the Ethereum price in the daily time frame indicates a bearish reading for several reasons. Firstly, the price broke down from an ascending support line that has been in place since November 2022, signaling the end of the previous upward movement. Additionally, during this decrease, ETH broke down from the $1,650 horizontal support area that had been in place since June 2023.
Bullish Divergence and Failed Reclamation
Between August 18 and September 12, there was a bullish divergence indicated by the daily RSI (Relative Strength Index), which is a momentum indicator. However, despite this bullish sign, the price of ETH failed to reclaim the $1,650 area and has fallen since then.
Possible Support Level and Positive News
If the ongoing decrease continues, ETH could fall to the 0.618 Fib retracement support level at $1,480. However, if it manages to reclaim the $1,650 area, there could be a 20% increase to the previous ascending resistance line at $1,900. In other news, Ethereum’s founder Vitalik Buterin has moved 400 ETH tokens to centralized exchanges, possibly indicating plans to sell. On a positive note, Ethereum’s daily active addresses have surpassed 1 million, overtaking Bitcoin (BTC), and Grayscale has applied for an Ethereum Exchange-Traded Fund (ETF).
Will Ethereum Reverse Trend Against Bitcoin?
The ETH/BTC chart in the three-day time frame shows an ongoing descent since September 2022. However, this decrease has been contained within a descending wedge, which is considered a bullish pattern. As the price approaches the end of the wedge, a breakout is expected. The three-day RSI has also generated significant bullish divergence, further suggesting an eventual breakout.
A Potential Bullish Trend Reversal
Overall, the Ethereum price analysis indicates a bearish trend for both ETH/USD and ETH/BTC pairs. However, the analysis of ETH/BTC suggests that a bullish trend reversal may be imminent. If the $1,650 area is reclaimed, it would indicate a bullish trend for ETH/USD as well.
Hot Take: Ethereum’s Price Struggles to Break Resistance
Ethereum’s attempt to break through the $1,650 resistance area was unsuccessful, leading to a bearish trend in its price analysis. Despite some positive news such as increased daily active addresses and Grayscale’s ETF application, Ethereum’s founder moving tokens to exchanges raises concerns about potential selling pressure. The ETH/BTC analysis offers hope for a bullish trend reversal with the possibility of breaking out of the descending wedge pattern. However, it remains to be seen if Ethereum can reclaim the $1,650 area and maintain a sustained upward movement.
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