Search
Close this search box.

Ethereum [ETH] Price Analysis: 21 October

Ethereum [ETH] Price Analysis: 21 October

Ethereum [ETH] Price Analysis: 21 October

  • Ethereum’s breakdown on the weekly chart made way for a rebounding opportunity.
  • The king alt’s network growth marked a significant plunge.

If the support at $1257 holds, it could pave the way for a possible recovery in the coming sessions, especially if the pattern breakout finds a reversal. At press time, ETH is trading at $1,279.

ETH witnessed a bearish flag breakout, is a revival due?

The slope of the ongoing bearish run highlighted a one-sided bearish edge for more than 11 months. The apex of the previous ascending wedge (yellow) marked the Alt-King’s ATH. A subsequent breakout positioned the coin for the extended pulldown. The 11-month trendline resistance (white, dotted) subsequently capped any buying rallies. The reversal of this resistance in April reinforced the selling advantage by triggering a bearish crossover at the 20/50 EMA.

The bounce from the $1052 support took the form of an ascending channel (white). The 20th EMA caused a trend reversal that paved the way for a breakout of the ascending channel. Since then, buyers have found peace in the area around 1257. A strong bounce above this baseline could help the altcoin test the 20 EMA near $1,585 in the coming weeks/months. To open up chances for a volatile bullish breakout, ETH buyers need to protect the immediate support zone.

Any decline below the $1257 level would position the altcoin for sustained downside. In these circumstances, the first major support level would be in the $1052 area. The Relative Strength Index (RSI) moved sideways as it showed an advantage for the sellers. However, if Accumulation/Distribution (A/D) recovers from its immediate trendline support, ETH could enter a short-term accumulation phase.

A substantial plunge in Network Growth

Since May last year, the growth of the ETH network has been steadily declining. In the last two weeks in particular, it has fallen and touched its 2017 lows. If the price action continues, the long-term direction will be bearish, however, network development activity has been relatively high in recent months. Finally, investors/traders should keep an eye on Bitcoin [BTC] movement.

This is because ETH shared an 820-day correlation with the real coin.

 

Share to Social Media

Leave a Comment

Your email address will not be published. Required fields are marked *

Recent Articles

Join Our Newsletter