Ethereum rebounded from long-term support at $ 325.
Long term technical indicators are bullish.
ETH / BTC is moving between support at 0.325 ฿ and resistance at 0.040 ฿
Despite a severe drop in early September, the movement in the price of Ethereum (ETH) remains intact. That said, a short-term decline could take place before price resumes its long-term upward movement.
Crypto trader @Iamcryptowolf shared a chart of Crypto Engine. There, he notes that the moving average (MA) reading throughout last year is surprisingly similar to that of BTC in 2015, before the bull run that took it to its all-time high.
These three events produced an upward movement, albeit of different magnitude and length. In 2019, this upward movement only lasted a few months, while that of 2017 lasted over a year, and that of 2020 is still ongoing.
MACD and RSI readings are similar in the crosses of 2017 and 2020 (green arrows) while they differ in those of 2019 (in red). It is therefore more plausible that the crosses of 2017 and 2020 were more similar to each other than to those of 2019, which supports the possibility of a sustained upward movement.
Further observation of this year’s move reveals that the bullish structure remains intact. The price has been following an ascending support line since March, and under which it has not returned. Additionally, ETH broke through the horizontal resistance at $ 315 and then validated it as support.
The course, however, suffered a rejection of the Fibonacci level 0.5 of the previous upward movement, creating a long upper lock. If the ETH exceeds this area, the next resistance would be $ 545 and $ 690.
The current rejection of ETH
A closer look at the daily chart shows that the ETH has been rejected by the $ 390 area. The latter corresponds to the previous support that has become resistance and is between the Fibonacci levels 0.382 and 0.5 of the entire previous decline.
This level has already rejected the course twice. Until ETH manages to break through it, it is more plausible that the recent rally on September 5 was a retracement rather than the start of a new upward movement.
The rejection would be confirmed by passing below the short-term ascending support line, which has been in place from previous lows. This would likely cause price to fall towards the minor support wick at $ 325.
The EH / BTC pair presents a very similar reading of its weekly technical indicators. The Stochastic Oscillator has already formed a bullish cross and the MACD is rising. The RSI is oversold, but it has yet to form any bearish divergence.
At the time of writing, the price was moving between the support of 0.325 ฿ (validated several times) and the resistance of 0.040 ฿.
If it breaks above the aforementioned resistance, it could start a very rapid rise, knowing that there is hardly any other resistance up to 0.055 ฿.