The Ethereum (ETH) Price Breaks 190-Day Resistance
The price of Ethereum (ETH) has reached a high of $1,865 today, breaking through a descending resistance trendline that has been in place for 190 days. This marks a nearly 20% increase in the past week. The question now is whether ETH will continue to break out from this trendline.
Ethereum’s Attempt to Break Above 190-Day Resistance
Looking at the daily chart, we can see that the price of Ethereum has been following a descending resistance trendline since reaching its yearly high of $2,141 in April. However, after hitting a low of $1,521 on October 12, ETH began to move upward. Today, it has reached the trendline that has been acting as a barrier for the past 193 days. This is the third attempt at breaking out from this resistance.
The Role of RSI in Ethereum’s Increase
The daily Relative Strength Index (RSI) is supporting the ongoing increase in the price of Ethereum. The RSI is a momentum indicator used by traders to determine whether a market is overbought or oversold. Readings above 50 and an upward trend suggest that bulls have an advantage. The RSI for ETH is increasing and currently above 50, indicating a bullish trend. Although it is overbought, there are no signs of bearish divergence that could lead to a drop.
Positive News Impacting Ethereum
This week, there have been several positive developments for Ethereum. The layer-2 protocol Scroll has launched on the mainnet, offering scalability and compatibility with Ethereum Virtual Machine contracts powered by zero-knowledge proofs. Nocturne, a privacy protocol for the Ethereum blockchain, has also announced a $6 million seed round with participation from Vitalik Buterin. Additionally, there is speculation that Frog Nation CFO 0xSifu may face liquidation if the ETH price increases, leading some users to call for a rally to trigger the liquidation.
ETH Price Prediction: Potential Breakout Above $3,000
According to technical analysts using the Elliott Wave theory, Ethereum’s weekly timeframe count is extremely bullish. It suggests that ETH is currently in wave three of a long-term five-wave upward movement that began in June 2022. If this count is correct, the price could accelerate quickly as wave three is often the most extended wave. The main resistance area on the weekly chart is at $1,950, and if Ethereum breaks above it, it could increase by 90% to reach the next resistance at $3,400.
Potential Risks for Ethereum’s Price
Despite the bullish prediction, if Ethereum’s price falls below the sub-wave two low of $1,521, it would invalidate the count and could lead to a 30% decrease to the nearest support at $1,200.
Hot Take: Ethereum’s Bullish Momentum Continues
Ethereum has made a significant breakout above its 190-day resistance trendline and continues to show bullish momentum. With positive news surrounding layer-2 solutions and privacy protocols for the Ethereum blockchain, as well as potential liquidation triggers for certain users, there are several factors supporting ETH’s upward movement. Technical analysis also suggests the possibility of a breakout above $3,000 if key resistance levels are surpassed. However, it’s important to be aware of potential risks and monitor price movements closely.
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