#Ethereum
#BlackRock
#ETHTrust
#Cryptocurrency
#TechnicalAnalysis
#RSIIndicator
#PricePrediction
#CryptoMarketAnalysis
On November 9, BlackRock filed to launch an Ethereum (ETH) trust, which resulted in a price increase of ETH above $2,000. However, the price fell over the weekend, failing to reach a new yearly high by just $4. The technical analysis from the daily time frame reveals that the Ethereum price broke out from a descending resistance trendline that had been in place for over 200 days. After the breakout, ETH reached a high of $2,136 before experiencing a slight drop. Although the price fell slightly, it currently trades at $2,060.
During the price increase, the Grayscale Ethereum Fund discount decreased to 14%, indicating a significant turnaround from the earlier 60% discount. This decrease in discount could be attributed to BlackRock filing for an Ethereum trust. The daily Relative Strength Index (RSI) gives a positive outlook, with readings above 50 indicating that buyers are in control. The RSI is on the rise and positioned above 50, signaling a bullish trend. Despite being in overbought territory, there are no indications of a bearish divergence that could trigger a decline. Cryptocurrency traders have a bullish outlook for the future of the ETH price, believing that the psychological resistance of $2,000 has been shattered. Furthermore, technical analysis based on the Elliott Wave theory suggests that ETH is currently in the third wave of a five-wave upward cycle, with a possible high of $3,250. However, it is crucial to note that a weekly close below the $1,950 long-term resistance will invalidate the breakout and could lead to a 40% drop to the closest support at $1,200.
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