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Eth price analysis: ethereum (eth) stuck at 8 month trendline, what’s next $3500 or $2900?

Eth price analysis: ethereum (eth) stuck at 8 month trendline, what’s next $3500 or $2900?

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Ethereum (ETH) usage has skyrocketed over the last month thanks to the ongoing NFT boom. Opensea, the largest NFT marketplace that runs on ETH, has experienced an explosion in volume over the month of August. Since this has occurred, the price of ETH price has stayed relatively steady as it consolidates awaiting its next move. BTC has also been steady over the last few weeks as the market awaits the start of its next move. Based on the technicals, ETH & BTC should breakout within the next week.

Since, ETH has surged nearly 100% off its $1700 low, price has been halted at a major trend line that was support for over 6 months. Bulls must break over this mark for ETH price to experience a large surge to the $4000 level. Since the beginning of August , volatility has subsided as ETH has stayed between $3000-$3300. This price action has formed an ascending channel which price has respected tremendously. For Ethereum (ETH) to confirm another bullish move, price must break & hold the major resistance found at $3323. If this is deemed successful, we can expect ETH to hit $3500 fairly soon.

Ethereum Price Analysis: ETH/USDT 1 Day Chart

In the case that bears take over & ETH price breaks to the downside of its ascending channel, we should expect price to land at the major support of $2927. Before this can occur, bears must pull ETH below the 25 day MA, which may be a struggle. This MA has held ETH up ever since price broke above the $2000 mark. If ETH price fails to break to the upside & breaks below the 25 day MA, we can then confirm Ethereum (ETH) to be in a short term bear trend which may land prices back to $2500.

While looking at the Stochastic RSI, we can see how strength just spent over a week within the oversold region. Despite price staying steady, strength dropped tremendously which may indicate ETH just gained the power for another bullish push. Breaking above the 50 value will confirm this view.
The regular RSI has been downtrending within a descending channel which is a healthy sign as long as it stays above the 50 value. Breaking to the upside of this channel will confirm another bullish push.

ETH Intraday Analysis

Spot rate: $3199
Trend: Neutral
Volatility: High
Support: $3135
Resistance: $3323

Disclaimer

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

About Author

Domenic

Domenic Fiore has a love for the financial markets. He decided to skip the college route to pursue entrepreneurship. He saw the vision to become an entrepreneur and wanted to achieve success from a young age. Domenic owned & operated a car detailing business since the age of 16, along with being a part of two CBD businesses through 2018 & 2019. He started his investment and trading career early trading in 2017 when he bought a newly released cryptocurrency alt-coin and saw 10x return in a few months. He then realized there was much potential and dove head first into learning everything he could. He became very passionate about technical analysis and knew it was his route to financial freedom. Over the last 4 years, Domenic has shared his analysis with many groups and received amazing feedback. Shortly after he wanted to help assist in the pursuit of spreading and helping others achieve success in the trading industry.

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