- Ethereum bulls are working tooth and nail to fully regain control over the price following the dip to $310.
- On-chain analysis suggests that ETH/USD has a smooth path to $360.
Ethereum has been on an unstoppable breakdown following yet another rejection from levels around $390. While several support zones, including $380, $360 and $340 failed to hold during the downtrend, the smart contracts giant token has embraced support at $310. This is the second time Ether is trading lows of $310 in September. A shallow recovery has already ensued, with the cryptoasset exchanging hands at $324.
Ethereum options expiry drawing closer
As established, Ethereum sustained a downtrend after trading a monthly high of $489, apart from the failed attempts to break above $400. Volatility within the crypto is also set to surge as the biggest expiry for ETH options comes on Friday. The options expiring in September have an open interest of over $460 million as reported. It is the biggest expiry for Ether options in the history of the digital asset. Many analysts and crypto enthusiasts expect the price to roll upwards amid the volatility.
Ethereum options open interest
Ethereum bulls nurturing the much-anticipated rebound
A double bottom-pattern seems to be forming in the 4-hour range. However, its impact can only be determined if it is confirmed. The Relative Strength Index (RSI) struggles to come out of the oversold region, bringing to light the resistance between $324 and $330. If the RSI sustains its motion above the oversold and trends towards the midline, we can expect Ethereum to continue with the momentum while targeting the next hurdle at $340. More resistance is envisaged at $360 and the confluence at $364, created by the 50 Simple Moving Average and the 100SMA.
ETH/USD 4-hour chart
IntoTheBlock’s IOMAP model suggests the only significant resistance runs from $363 to $374. About 668,000 addresses previously bought 10.42 million ETH in this supply area. Ethereum could relaunch the mission to trade above $400 if this zone is flipped into support.
On the flip side, Ethereum still lacks strong support, hence the need to proceed with caution. The IOMAP highlights $296 - $306 as the most robust demand zone. Here, around 765,000 addresses previously purchased 1.81 million ETH. Trading under this support could open the Pandora box, forcing ETH/USD onto the key levels around $280 and $250.
Ethereum IOMAP chart
The bullish case is also supported by an increase in the number of whales holding Ethereum. According to Santiment, a leading provider of on-chain data, wallets holding between 100,000 and 1 million ETH have been on the rise since September 21, from 159 to 163 on September 24. This figure may appear small, but when these coins' volume is considered, then its effect on the price can be fathomed. Therefore, the increase in buying pressure from the whales is likely to continue supporting the momentum to $360.
Ethereum holder distribution chart
Looking at the other side of the picture
Most indicators suggest that Ethereum is on the way to a rebound. However, it worth mentioning that the Moving Average Convergence Divergence (MACD) is still in the negative territory even in the hourly range. In other words, selling pressure is present and cannot be ignored.
ETH/USD hourly chart
Besides, the bullish scenario to $360 would be invalidated if Ethereum does not close above the 50 SMA ($337) in the same 1-hour range. Moreover, if initial support at $320 caves in Ethereum may retest $310 support again. Losses could also extend to $300 and $280, respectively.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin rises 4% amid long liquidations, and short-term holders realized share
Bitcoin climbed above $63,000 on Friday after Mt Gox pushed its repayment plans to 2025, easing tension among investors. Meanwhile, CryptoQuant data reveals that Bitcoin long liquidations hit $290 million on Thursday, the highest level since 2022.
Arbitrum, EigenLayer, Axie Infinity lead over $214 million worth of token unlocks this week
Token Unlocks data on Friday indicates that the crypto market is poised for another round of supply hikes this week, with EigenLayer, Arbitrum, Axie Infinity and Starknet set to release a combined $214 million worth of their tokens into circulation.
XRP holds steady above $0.53 as Ripple confirms cross-appeal, Bitnomial sues SEC
Ripple holds steady above key support at $0.5300. The altcoin gains as the payment remittance firm confirms the filing of a cross-appeal in the Ripple lawsuit with the Securities & Exchange Commission. Ripple is gearing up to introduce new features for its custody solutions for institutional investors.
Ethereum Price Forecast: ETH reclaims $2,395 support but risks inflationary pressure with Unichain's launch
Ethereum (ETH) reclaimed the $2,395 support level on Friday and is attempting a move toward the $2,490 resistance. The top altcoin could face inflationary pressure in the coming months when Uniswap's Unichain goes live due to the decentralized finance protocol's large contribution to Ethereum revenue and daily burnt ETH.
Bitcoin Weekly Forecast: Will BTC decline further?
Bitcoin’s (BTC) price fell over 6% at some point this week until Thursday, extending losses for a second consecutive week, as it faced rejection from a key resistance barrier.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.