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Friday, September 24, 2021

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The A to Z of what Ethereum must do to maintain the bullish structure




Disclaimer: The findings in the following analysis are the sole opinions of the author and should not be taken as investment advice.

A decisive close below Ethereum’s daily 20-SMA (red) put sellers back in the mix after minor gains were seen. Now the ETH channel from early and mid-August can be expected to return to the spotlight once again as buyers find renewed momentum.

It is also important to understand that the settlement on September 7 did not even come close to that observed on May 19. However, the same could translate to big losses if buyers aren’t careful.

At the time of writing, Ethereum was trading at $ 3,295, down 2.7% in the last 24 hours.

Ethereum daily chart

Source: ETH / USD, TradingView

ETH can be expected to find resting ground between $ 3,000 and $ 3,550 before the next major market shift. The aforementioned channel had triggered a period of consolidation earlier when ETH cooled off from a rally that extended from its July lows.

Considering the recent pullback, ETH was still holding a bullish shape at press time. The price was trading above its 50 (yellow) and 200 (green) SMA lines.

However, it is important for ETH to hold a position above its 50% Fibonacci level to maintain a bullish narrative. Failure to do so would drag the price toward the 38.2% Fibonacci mark, from where short sellers will carry the threat of further drawdowns.




On the other hand, an immediate close above the 20-SMA would alleviate many uncertainties in the market, although the $ 4,000 test is unlikely to be repeated. Not until the ETH indicators can reverse their bearish signals.

Reasoning

Most of the ETH indicators formed bearish setups. The MACD fast moving line slid below the Signal line. This paved the way for additional losses below the midline. Meanwhile, the buying force was limited in the market as the Awesome Oscillator formed two peaks but was unable to move higher.

At press time, the AO threatened to close below its midline – an Aa development that typically triggers short selling.

Finally, the RSI seemed to ignore such bearish predictions. The index continued to trade near equilibrium and did not give in to the downward pressure.

conclusion

As there appeared to be some evidence of buying pressure, ETH has the potential to stop incoming losses. As a result, the price can be expected to stabilize between $ 3,000 and $ 3,550, before it takes hold of a broader trend.

The RSI, MACD and Awesome Oscillator were trading above their half lines, but they posed some threat going forward. If these indicators keep moving south, a few more losses would line up for the world’s second-largest digital asset.

To maintain a bullish thesis, ETH should stay above $ 3,000.

This is a machine translation of our English version.




TAMMY SEWELL
Tammy Sewell is our Writer and Social at OICanadian.com. Tammy loves sports, she writes our celebrities news. She spends time browsing through several celebs news sources as well the Instagram. Email: [email protected] Phone: +1 513-209-1700

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