Ethereum price confused the heads of both bulls and bears

CONTENT

  • ETH rate cannot determine the direction of movement in any way.

  • ETH is trading between $ 315 and $ 380.

  • Wave analysis promises the price of growth in the region of $ 545.

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The Ethereum (ETH) rate made a timid attempt to grow, which immediately died out, and the price almost completely won back the entire bullish move.

Although technical indicators give bullish signals, only a breakdown of the current resistance area will allow us to consider the currency trend as bullish..

Trading range

The Ethereum price marked a maximum of $ 489.57 on September 1 and began to roll back from it. The decline continued until the price hit a low of $ 311.04 on September 5. Growth started from the low again, but it was rather short-lived, and ETH bounced off the high, marked at $ 394.

Now the pair is stuck in the $ 315 – $ 380 range, trading directly in the middle. A breakout of the support area can trigger a fall in the direction of $ 240, and a breakout of the resistance area can push the price up to the 0.618 Fib level at $ 420.

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ETH chart. Source: TradingView

Technical indicators paint a very mixed picture:

  • MACD is rising and giving signals of bullish divergence, but far from the green zone.
  • The RSI failed to signal a bullish divergence and is holding below 50.
  • Stochastic Oscillator has formed a bullish crossover and is growing.

At moments of price consolidation, there is nothing unusual in such indicators, however, the current situation demonstrates that the daily chart cannot help us determine the further direction of movement.

ETH chart. Source: TradingView

Meanwhile, the weekly chart is still bullish, despite the bearish engulfing candle formed for the week of August 31 – September 7.

The price is moving along the line of upward support and has formed long lower wicks around the 0.382 Fib level of the correction of the entire bullish move, which can be considered an indication of pressure from buyers.

ETH chart. Source: TradingView

Short-term dynamics

Cryptocurrency trader @ACXTrades shared an Ethereum chart on Twitter, reporting that he had opened a short position at the current price around $ 350, with a target of $ 333.

Source: Twitter

Ethereum Price Prediction: ETH bulls committed to set new ATH beyond $2K !!!! BIG PUMP ETHEREUM NOW

After this tweet was posted, the price did start to decline, approaching an area of ​​minor support at $ 335.

This decline was preceded by bearish divergence signals from RSI and MACD, reinforcing its validity.

Ethereum price confused the heads of both bulls and bears

ETH chart. Source: TradingView

Wave analysis

According to the most likely scenario in wave analysis, the price started the A-B-C correction (black on the chart) from the March 3 low, and is now inside the fifth sub-wave (blue) of wave C.

Based on the length of the previous moves, this wave should end around $ 545.

ETH chart. Source: TradingView

If our assumptions are correct, then on September 5, the ETH rate began a new growth phase and completed waves 1 and 2 (blue).

A decline below the wave 2 low at $ 313.29 will neutralize this scenario, and a price drop below the September 5 low at $ 308.42 will completely reverse the bullish scenario..

ETH chart. Source: TradingView

Alternative scenario

According to the alternative scenario, ETH has already completed the rally and began a bearish impulse move on September 2 (red on the chart).

However, this option remains unlikely as the implied wave 5 does not resemble an impulse structure, but rather an A-B-C formation..

ETH chart. Source: TradingView

This bearish scenario will be neutralized if the pair rises above the high of September 17, and absorption of the October 1 high at $ 368.1 will cancel the results of the wave analysis.

ATTENTION: BIG MOVE SOON FOR BITCOIN LITECOIN ETHEREUM Crypto TA prediction, analysis, news, trading

ETH chart. Source: TradingView

You can read the latest Bitcoin forecast here.

Disclaimer: Trading cryptocurrencies carries a high level of risk and is not suitable for all investors. The opinion expressed in this forecast does not reflect the opinion of the editorial staff of BeInCrypto.

Disclaimer

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Ethereum price confused the heads of both bulls and bears
Ethereum price confused the heads of both bulls and bears
Ethereum price confused the heads of both bulls and bears
Ethereum price confused the heads of both bulls and bears

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