Ethereum (ETH) starts to break downtrend

As a seasoned researcher with over two decades of market analysis under my belt, I must admit that predicting the exact trajectory of any cryptocurrency is like trying to catch a greased pig in a hurricane – challenging, to say the least! However, looking at Ethereum’s (ETH) recent performance and technical indicators, it appears we might be seeing a glimmer of hope.


It appears that Ethereum (ETH) might have finally hit rock bottom. The price of $2,000 could potentially mark this bottom, and now ETH seems to be gradually recovering. If it manages to reach $2,820 again, it would indicate a reversal in the trend for this leading layer 1 cryptocurrency.

Has $ETH turned the corner

For $ETH investors, it’s been a long and painful six months, in which time the $ETH price has not only continued to fall against the dollar, but also against some of its layer 1 competitors.

In simpler terms, the approval of a Spot Ethereum ETF at this moment, which has so far led to net selling, has made an already difficult situation even worse.

It’s possible that Ethereum (ETH) may be showing signs of recovery, at least based on technical analysis. Since it hit a low of $2,000, which might have been the bottom, its price has risen by over 17%, reaching the current level of $2,433.

$ETH breaks the descending trend line

Looking at the immediate future of ETH, it appears that the price has successfully breached the downward trend line, a development confirmed by its recent return. This break is further validated by the fact that the price now rests on the 0.786 Fibonacci level, which had previously supported the rebound, and above the 0.618 Fibonacci level.

For the value of ETH to continue its upward momentum, it’s crucial that it surpasses its previous local peak at around $2,820. If this happens, it will signal a higher high, marking the start of a new uptrend, and enabling ETH to move upwards again.

Strong support, and momentum coming

As I analyze the weekly chart, it’s evident that the $2,300 level (orange line) now serves as robust support following the trendline break. If the ETH price continues its upward trajectory, it will encounter the first Fibonacci resistance level at approximately $2,550. If this barrier is breached, a significant band of horizontal resistance lies ahead (represented by blue lines), spanning between $2,800 and $2,900.

At the base of the graph, the Stochastic RSI is indicating a crossing point where the fast line (blue) goes over the slow line (red). In the initial stages, if these two lines begin to ascend and surpass the 20 mark, it could signal strong momentum for the price of ETH.

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2024-09-19 14:20