Ethereum failed breakout attempt, but trend remained bullish

Ethereum failed breakout attempt, but trend remained bullish

Ethereum ETH Breaking News- Bullish Breakout!!! Big Move Soon Price Predictions & Technical Analysis

Contents

Ethereum failed breakout attempt, but trend remained bullish
CONTENT

  • Ethereum bounced off long-term support in the $ 325 area.

  • Long-term technical indicators are bullish.

  • ETH / BTC is trading between ₿0.0325 and ₿0.04.

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Despite the collapse in early September, Ethereum (ETH) continues to remain in line with a long-term bullish trend.

However, before the growth resumes, the pair may make a short-term drawdown.

Long-term indicators

Cryptocurrency trader @Iamcryptowolf shared the ETH chart on Twitter, drawing attention to the similarity of MA dynamics over the last year with the situation in BTC in 2015. Recall that then the accumulation period was followed by an aggressive bull run, which eventually brought the price to historical highs.

Source: Twitter

Until now, the bullish crossover has appeared on the weekly stochastic three times (indicated on the chart by blue arrows):

  • January 2017
  • March 2019
  • March 2020

All three preceded growth, although the extent and duration varied. In 2019, growth lasted only a few months, in 2017 – more than a year, and this year it continues to this day.

Ethereum failed breakout attempt, but trend remained bullish

The MACD and RSI indicators look similar for the 2017 and 2020 crossovers (green arrows). This increases the likelihood that the 2017 and 2020 intersections are more similar to each other than the 2019 intersections. Accordingly, this indicates the potential for sustainable currency appreciation..

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ETH chart. Source: TradingView

A closer look at the Ethereum chart for this year shows that the market remains bullish. Since March, the price has been moving along the upward support line, which has not yet been broken. In addition, the pair made a bullish break area $ 315 and turned it into support.

However, the price bounced off the 0.5 Fibo retracement level of the previous bearish move, forming a long upper wick. A bullish breakout of this level will target the next resistance areas of $ 545 and $ 690.

ETH chart. Source: TradingView

Current bounce

Analysis of the daily chart shows that the ETH rate bounced out of the $ 390 area. It represents the previous support level and is also located between the 0.382 and 0.5 Fib retracement levels of the previous bearish move.

The market has already pulled back from this level once. Until ETH makes a successful breakout, the current rally from the September 5 lows should be seen as a correction rather than the start of a new rally..

Ethereum failed breakout attempt, but trend remained bullish

ETH chart. Source: TradingView

The pullback will be confirmed by a bearish breakout of the short-term upward support line that has been following the pair since the aforementioned lows formed. In this case, the price may decline to insignificant support of $ 325.

ETH chart. Source: TradingView

ETH / BTC

The ETH / BTC rate shows very similar indicators on the weekly chart. The Stochastic Oscillator has already formed a bullish crossover, and the MACD is growing. RSI is oversold but is not signaling bearish divergence yet.

At the time of writing the analysis, the pair was trading between support and resistance at ₿0.0325 and ₿0.040, and the first level had already passed several tests as a support.

A bullish breakout of the resistance area could trigger a skyrocketing rally as there is almost no resistance on the chart up to ₿0.055.

ETH chart. Source: TradingView

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