Disclaimer: The findings in the following discussion are the sole opinions of the author and should not be considered investment advice.
Ethereum has made both bullish and bearish arguments so far this September. Earlier in the month, ETH was up nearly 30% to a 16-week high of $ 4,025 and set its sights on a new ATH. However, a sell off on September 7 brought an abrupt end to its rally and triggered an immediate 25% sell off.
In fact, the market was still recovering from the aftermath of this decline, at press time, as ETH was unable to advance above certain resistance levels. Also, the lower trend line had been broken and a downtrend seemed to be in play.
With some advocates calling for a bearish return to late July levels, ETH appeared to be under pressure to prove its cynics wrong. Fortunately, expectations of a bear market might not be reasonable at the moment, as ETH has been trading above some important price levels. However, immediate recovery is still a long shot.
At the time of writing, ETH was valued at $ 3,077 after noticing a bullish comeback in the past 24 hours.
Ethereum daily chart
Taking into account recent losses, ETH, at press time, was trading at a discount close to 30% compared to its all-time high in May. Considering the fact that ETH has yet to close below the important $ 2,650 support level and its daily 200-SMA (green), calling for a bear market is really premature.
A resistance range of $ 3,660- $ 4,016 is all that separates ETH from registering a new ATH on the chart.
While this may seem like a small mountain to climb, it is fraught with several short-term challenges. For example, the visible range suggested that ETH attracted a lot of trades between $ 3,000 and $ 3,500. This means that the bulls would have to exert a fair amount of pressure to push ETH above $ 3,500.
The price has yet to decisively close above the $ 3,000 mark. A bearish spinning top or doji candle would mark a possible revision of the 200-SMA. From it, you can also threaten a breakdown. Finally, the upward sloping trend line was also bearish and has yet to be retested.
The ETH indicators also showed bearish readings. The RSI, MACD and Awesome Oscillator were on the verge of extending below their midlines, a development that discourages speculation from bullish traders. This also meant that sellers were in control of the market and any gains would only be momentary.
To reverse these readings, ETH must close above $ 3,500 backed by solid volumes. This would increase the chances of getting $ 4k back.
The ETH market played more favorably for sellers than for buyers. Traders should wait for ETH to close above $ 3,500 in healthy volumes before taking long positions.
Until then, ETH would risk further reductions.
This is a machine translation of our English version.