ETH’s price formed a continuation pattern that is highly bullish. If the breakout occurs above, it could possibly push the token to a record high.
The following is a summary of the information that you will find on this website:
- ETH’s price has fallen by about 9% since it was unable to overcome the $4,700 barrier earlier this week.
- The weekly chart has revealed a bull-flag pattern that spans multiple months.
According to crypto.news data, Ethereum (ETHThe price of ) fell by 4%, to $4,329, on October 9th afternoon, Asian time, after the bulls failed late yesterday to break through $4,600, a resistance level. Its price has fallen 9% since its high on Tuesday, when it reached $4,753. This is due to a combination of project-specific factors and the broader rally in the market, fueled by renewed confidence across the cryptocurrency space.
It was the historical significance of the rally that fueled it in part. bullish sentiment that surrounds OctoberThe month of is known to be a strong one for seasonal gains in cryptocurrencies. Strong inflows The positive momentum was also boosted by macro-tailwinds such as the expectation of more dovish policies from central banks.
The tide started to change on October 7, when Ethereum was unable to surpass the $4,700 resistance level The price of Ethereum has fallen for the second consecutive time in the last 30 days. A combination of short-term profit taking, broad market liquidations and a resurgent U.S. Dollar weighed down on investor sentiment.
The weekly chart shows that ETH has formed a bullish flag as it continues to fall after the rejection of higher prices. Technically, this is a pattern that appears when an asset’s price surges, then stalls in a downward-sloping range.
At the time of publication, ETH traded above all the key moving averages (SMAs) on the weekly graph, and the SMAs were still above each other, a bullish alignment which suggests that the price will continue to rise.
The momentum indicator RSI, however, showed a value of 61. That means that ETH is still able to grow before reaching overbought levels, giving bulls a bit more time before a serious correction occurs.
The price action in the daily timeframe has confirmed the golden cross as well, where the 50-day average crossed above the 200 day. This pattern has historically been associated with long-term momentum that is bullish.
For the moment, the price of ETH is currently at $4,500. This psychological level aligns itself with the upper limit of the bull-flag pattern.
The breakout of this pattern could be confirmed by a clean break above the zone. This would confirm the trend and spur ETH to move upwards, first toward $5, but possibly even towards the $8,100 measured movement target, which is calculated by adding height of flagpole and breakout point.
Some market observers urge caution now that ETH is close to a key support zone. According to well-followed analyst Ted Pillows, Ethereum must hold the $4,250–$4,300 support zone to maintain its bullish setup.
If the price breaks below this range, the trend could be invalidated and the market may experience a more severe correction towards $4,000 over the next few weeks.
This article is not investment advice. This page is intended for informational purposes only.
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Source: crypto.news
