Lorenzo Stroe
Independent Analyst
- Ethereum is currently trading at $365 after a healthy rebound from its low at $310.
- The current bullish momentum might have enough strength to push the digital asset towards $400.
Ethereum bulls have regained some ground in the short-term, getting back $5 billion in market capitalization. The digital asset traded as low as $310 on September 5, and it’s now trading at $364.
Ethereum is poised for further gains according to indicators
Several indicators support the theory that Ethereum still has more room to the upside, at least in the short-term. If we look at the 12-hour chart below, we can observe a ‘9’ buy signal from the TD sequential indicator.
ETH/USD 12-hour chart
ETH's price has just climbed above the 50-MA, and it’s trying to turn it into a support level. The MACD has turned bullish on September 26 and remains strong.
Ethereum IOMAP Chart
When looking at possible resistance levels on the way up, the In/Out of the Money Around Price chart by IntoTheBlock provides us with some valuable information. Right off the bat, we can observe that very few addresses bought at $365 and above in comparison to $353 and below. The area between $365 and $376 only has 2 million ETH in volume, a minuscule number compared to the 10 million ETH in volume at the $342-353 area.
This chart shows that Ethereum has way more support than resistance, which would validate the buy signal. The 100-MA at $385 will also pose some resistance for the bulls in the short-term.
Ethereum is facing other challenges ahead
While the 12-hour chart is heavily in favor of the bulls, other time frames like the 4-hour chart show signs of a short-term pullback.
ETH/USD 4-hour chart
On the 4-hour chart, the price of the smart-contracts giant is currently fighting to stay above the 100-MA at $362. A rejection from this level would be notable and likely to take ETH down to the 50-MA at $349, which coincides with the most significant support area on the IOMAP chart.
ETH IOMAP Chart
Bulls need to pay close attention to the $348 support level as it represents a vital pillar for Ethereum in the short-term.
On the other hand, if the buy signal is validated, we could see Ethereum test the 100-MA at $385 and the $400 psychological level before the next correction.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.