Crypto Daily: Ethereum Will Try to Break Out Resistance level

Sep 29, 2021
05:09
2 min reading

Choise.com team

As a result, Bitcoin’s dominance has continued to rise for 7 consecutive days. So, the second-largest cryptocurrency by capitalization, Ethereum, has decreased by 4%. Let’s take a look at the chart:

ETH price

Over the past 2 days, the price of ETH fell by 11% and dropped to $2,789. This time, the fall was protracted, and not sharp, as it usually happens. The price dropped lower and lower hour by hour and none of the market participants could reverse this trend. Moreover, Ethereum continues to move in the downtrend formed since the beginning of September.

On the 4-hour timeframe, the “two tops” pattern can be noted, which speaks of a fall and is now clearly seen by many. However, this is most likely a delusion, since this pattern occurs on an uptrend and is a reversal one. In this case, the continuation of the trend will take place, which contradicts this formation.

We believe this could be a more complex reversal pattern, such as a triple bottom or an inverted head and shoulders. Both of these patterns are reversal patterns and occur on a downtrend. This would be true if the chart hits $3,150.

Now let’s take a look at the indicators. The RSI has formed two rallying tops over the past week on the 4-hour timeframe. At the same time on the chart, both of these tops came to the same level at $3,165. As a result, a discrepancy appeared between the chart and the indicator and it speaks in favor of further growth. A similar situation occurs on the MACD indicator, which has been steadily growing over the past 5 days.

Stochastic has also dropped significantly over the past 3 days. During that time, this oscillator came out of the overbought level and came below the oversold line. At the same time, you can see that Stochastic has already turned upward and is trying to overcome the resistance.

All this indicates a possibility of the ETH rise in the nearest future. The first mark at which Ethereum can stop will be the $2,963 level. However, this is a local resistance level. The largest number of buyers and sellers will appear around the $3,150 mark. Both of these levels are indicated by the Fibonacci extensions and the middle and higher Bollinger bands. Therefore, we expect to see growth by 10% from the current level. Depending on how the price behaves at these levels, it will become clear in which direction Ethereum will go next.