Cryptocurrency Price Analysis: ETHEREUM

By Harshit

10th September 2020

Ethereum is pointing towards a strong recovery, plummeting after $488 2-year high. The second largest cryptocurrency can be seen moving above the $350 support but is hurdling to cross the $370 mark over the past week. By the time of writing, the asset is trading at $365 with the bulls aiming to regain the Bullish Momentum and retrieving from enormous disposal faced since the beginning of this Month.

SHORT TERM PRICE PREDICTION: ETH/USD

(Source: Source Link)

Examining from the technical levels, the Relative Strength Index (RSI) a momentum oscillator estimating the extent of latest price changes (Check: Source Link) currently holds up at 46% with the measure facing upwards moving towards it’s 50-60 support line after experiencing a drop to 38% when the asset closed at $335 , on Saturday, for the first time since March. Since then, the indicator is facing an indecisive movement operating in the favour of bears which seems to be overturning as of today.

Similarly , The Bollinger Band ( check: Source Link)

Another indicator measuring the market condition, seems to be pointing a rise from the high influx of selling recovering from an oversold condition.

Ethereum was first seen approaching the lower band when the asset hit a $370 low with a 13% drop on the same day. The bearish run was confirmed when the price hit $310 low on Saturday.

However, the asset experienced the typical correction when the price closed at $351 yesterday.

Both the indicators seems to be signalling an upward run for a short time.

(Source: Source Link)

Moving Forward, Moving Average Convergence Divergence (MACD) ( check: Source Link) another momentum trend generating oscillator indicates a recovery from the high selling oppressed by the bears over the past week. The measure is facing a -8.5 after hitting a -11.3 for the first time since March, On Tuesday.

The MACD line can be seen facing upwards and moving towards the signal closing the wide bearish divergence created over the past week.

Furthermore, the divergence between the price and Shorter EMA (EMA 26)
(check: Source Link

can be said to be regaining over the coming days as by the time of writing the asset seems to be approaching the shorter EMA with a vision to move above it. Thus, the indicator suggests that bulls are helping the asset recover from the drop.

It can be noted, Ethereum first dropped below EMA-26  when the asset closed at $382 marking the beginning of the incoming down run, last Thursday. The asset was further seen, moving below the Longer EMA-50  closing at $335.25 with a 13.57% drop from the previous day.

Immense selling from people holding on to the asset when Ethereum hit $488 2-year high can be  looking for a profitable exit can be the cause for the sudden plummet.

(Source: Source Link)

Key Support:$334, $311, $278

Key Resistance: $401, $453

Incorporating the above, it can be said that Ethereum needs to stay above $335 support for the coming days order to gain the bullish momentum again to reach the $400 mark.

Price falling below $335 will see further downtrend to $311 and then $278.

FOR MORE SHORT TERM REFERENCE:

1. Source Link
2. Source Link

Harshit

Currently Studying Bachelor of Science.(Hons) degree in statistics and seeking real-world,hands on experience to further develop acquired skills. Passionate to pursue a career in analysis with a strong interest in the field of financial market.

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