The price of Ethereum (ETH) has failed to maintain its upward momentum and broke down from the $1,650 horizontal resistance area. This rejection suggests a bearish trend in the ETH/USD pair. The price action also indicates a bearish signal, as ETH broke down from an ascending support line that had been in place since November 2022. Additionally, the price fell below the $1,650 horizontal support area that had held since June 2023.
Although there was bullish divergence in the daily RSI between August 18 and September 12, with a price decrease combined with a momentum increase, ETH was unable to reclaim the $1,650 area. Instead, the resistance area rejected the price on September 18, leading to a further fall. If the downtrend continues, ETH may reach the 0.618 Fib retracement support level at $1,480. However, if it manages to reclaim the $1,650 area, a 20% increase to the previous ascending resistance line at $1,900 is likely.
In terms of ETH/BTC analysis, although the three-day chart also shows a descent since September 2022, it is contained within a descending wedge, which is considered bullish. The price is approaching the end of the wedge, suggesting an imminent breakout. This is further supported by the significant bullish divergence in the three-day RSI. Therefore, while the Ethereum price trend appears bearish in both the ETH/USD and ETH/BTC pairs, there are indications of a potential bullish trend reversal, especially if the $1,650 area is reclaimed.
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