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Ethereum has risen beyond $3,200, giving its investors a much-needed lift to start the month. After China’s prohibition on all crypto-related transactions depressed investor mood, ETH fell more than 10% in September. The recovery of investors’ interests in crypto assets reversed the trend in the ETH/USD pair to the north on 1st October. The technical picture remains upbeat, with the no. 2 crypto is still trending higher within its 1-month descending channel and still below its daily moving average (MA 50) at $3,300. That said, there are some nascent signs for optimism among ETH bulls as today’s rally knocks off a recent pullback bouncing from support in the $3,000 key area. The ETH/USD is up about 9.5% since the start of the session reaching the $3,320 intraday high at the time of writing. Ethereum reserves have been steadily declining on exchanges over the last few months. Since July 2021, the number of wallet addresses holding Ethereum for less than a month has increased by 43%.
Key Levels
Resistance Levels: $4,500, $4,000, $3,500
Support Levels: $3,000, $2,700, $2,500
ETH/USD Daily Chart: Ranging
ETH/USD Daily Chart
Ethereum is net positive changed over the week, but only after substantial volatility from almost two-week lows. The ETH/USD is currently breaking off the moving average (MA 50) at $3,300. The expectations are for the pair to retest the resistance level of $3,500 once the breach is over. The ETH bouncing off previous support in the $3,000 area has assisted the buyers and Relative Strength Indicator is peeking out of its equivalent bearish channel.
The is suggesting that the surge of buying pressure may be enough for a breakout in price itself. This leaves ETH/USD at a potentially attractive trading level for bulls and bears alike. If prices can break conclusively above resistance from the bullish channel and moving average (MA 50) near $3,300, it could signal a new bullish leg toward $3,500 or even the previous highs at $4,000 next.
ETH/USD 4-Hour Chart: Ranging
ETH/USD 4-Hour Chart
Technically, a firm break of $3,000 resistance turned support in ETH/USD would indicate short-term bottoming at a $2,651 low of September. A stronger rebound could follow for $3,500 resistance. The lower time frame analysis shows that the $3,500 area is a key bullish target and potential swing sell area for ETH/USD bears.
Gains above the $3,500 resistance level should prompt a test towards the $4,000 price area. The ETH/USD pair is only bearish while trading below the $3,000 level, key support is found at the $2,800 and $2,700 levels. The pair is only bullish while trading above the $3,200 level, key resistance is found at the $3,500 and $4,000 levels.
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