Ethereum (ETH) Price Outlook: Will the Bounce from Key Support at $1500 Trigger Growth?
Date: 2023-09-11 Author: Dima Zakharov Categories: BUSINESS, IN WORLD
Ethereum (ETH) enthusiasts and investors are closely monitoring the cryptocurrency's price as it approaches a critical long-term ascending support line, with a history spanning 450 days. Despite recent bearish price action, there are promising signs on the horizon, including a bullish signal from the RSI index. This article delves into the latest developments in Ethereum's price and what they mean for potential future movements.
Ethereum Nearing 450-Day Support:
Analyzing the daily chart's technical analysis, Ethereum's price has displayed a bearish trend. In April, the price briefly surged above the $2000 resistance level (marked in red), but its inability to sustain this upward momentum hinted at a bearish sentiment. It appeared that buyers couldn't maintain control, leading to a takeover by sellers.
In July, Ethereum once again challenged the $2000 resistance zone (indicated by the red icon), initiating the ongoing downward trend. Currently, ETH has reached a low of $1,550 on August 17th before experiencing a rebound.
Currently, Ethereum is approaching the ascending support line, positioned at the $1500 level. This support line has been in place since the commencement of the upward movement in June 2022 and spans a remarkable 450 days. Notably, this support line has not been tested since November 2022 (marked in green). A drop to this level would signify a 6% decline from the current price.
Conversely, a retest of the $2000 region would indicate a 24% surge.
Ethereum Price Prediction:
Despite the prevailing bearish price action, the Relative Strength Index (RSI) is sending a decisively bullish signal. On August 17th, this momentum indicator dropped to a low of 21, the lowest since June 2022.
Since then, it has risen and formed a bullish divergence (green line), implying that the price drop is accompanied by strengthening momentum. Such occurrences often lead to significant price increases.
Moreover, the RSI has exited the oversold zone. The last time this happened (green icon), it acted as a catalyst for a 145% price surge, propelling ETH to its current annual high.
