As a seasoned researcher with over two decades of experience in the ever-evolving world of cryptocurrencies, I have witnessed numerous market cycles and trends that could make even the most hardened sailor seasick. However, the current state of Ethereum (ETH) intrigues me more than the stormy waters of the past.
For several months now, Ethereum’s (ETH) price has been having trouble picking up positive momentum that would typically drive its growth. In contrast to Bitcoin’s (BTC) impressive 14% rise in October, Ethereum managed only a modest 1% increase during the same period.
The relatively low interest shown by retail and institutional investors towards Ether is also impacting its price, as the ETH ETF saw only $4.4 million in inflows on October 30th compared to the BTC ETF’s $893 million. This represents a 0.49% share compared to its direct competitor.
Nevertheless, it seems that the downtrend for this altcoin may soon come to an end, according to a technical analysis expert, who predicts that Ethereum’s last price drop has occurred, paving the way for more positive price movements in the future.
ETH’s “final dip” was at $2,500
According to Poseidon, an individual investor, Ethereum might have hit its lowest point, or what’s often referred to as “the final dip,” over the past weekend. The cryptocurrency dipped to $2,382 but quickly bounced back above $2,500 within two days. Poseidon reasons that Ethereum managed to regain the 200-day Exponential Moving Average (EMA) line in the 8-hour chart, suggesting that the weekend’s drop was a “bear trap” or temporary deviation from its usual trend.
Poseidon added,
“If it holds above $2600, I’ll add more long positions. I still believe this range will ultimately break to the upside.”
According to our study, investing in Ethereum could potentially yield a substantial return of approximately 88%, given an initial investment of $2,500. It seems likely that Ethereum will reach new record highs before too long.
At the moment, the Ethereum to Bitcoin (ETH/BTC) graph is getting close to a significant level. As the price hits its all-time high control point (POC), MaxBecauseBTC, an unidentified crypto analyst, emphasizes that this is a range where most transactions have taken place since 2016. This makes it a crucial support zone where prices could see a sudden change in trend direction.
Ethereum chases 200-EMA flip on the daily chart
Looking at the technical aspects, Ether is consistently climbing above its rising trendline support, with potential for another test around the $2,550 to $2,600 zone. On the daily graph, the price action appears to be forming an ascending triangle, a bullish indication in market analysis.
If the resistance level for ETH is at $2,800, it could aim to surpass the 100-day and 200-day Exponential Moving Averages (EMA) to strengthen its upward trend based on these technical indicators.
The Relative Strength Index (RSI), currently stands above 50, yet it hasn’t surpassed 70. This signifies that buyers are in a strong position, but the asset isn’t showing signs of being excessively purchased.
As the Bollinger Bands draw closer together, we might expect lower price fluctuations for the next several days. However, if Ethereum (ETH) manages to close a daily trade above $2,800, volatility could spike abruptly.
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2024-10-31 19:15