- Ethereum price’s strong rebound tags $1,328 but runs straight into an acute resistance around $1,350.
- A double-bottom pattern will likely confirm on the four-hour chart ahead of a bullish breakout to $1,496.
- Large volume holders must positively flip their sentiment on Ethereum to sustain an uptrend.
Ethereum price is doddering at $1,328 after climbing 8.3% over the last 24 hours. The second-largest cryptocurrency looks forward to dispersing a strong supply area at $1,350, a move that could propel it to $1,496.
Ethereum price inches closer to a bullish breakout'
A double-bottom pattern appeared on the four-hour chart after the token tested support at $1,230 for the second time since September 22. This bullish technical pattern usually leads to a trend reversal, presenting traders with an opportunity to take long positions in ETH price.
It is worth mentioning that the double-bottom pattern forms after an extended downtrend, characterized by two valleys – the bottoms. As the price bounces from the second valley, Ethereum price begins the process reversal through validation of a bullish breakout.
ETH/USD four-hour chart
A spike in volume is necessary to ascertain the uptrend’s viability. However, traders must exercise patience until Ethereum price rises above the neckline resistance before activating buy orders.
Ethereum eyes an 11.77% move to $1,496 from the breakout point at $1,350. The 50-day SMA (Simple Moving Average), red, and the 100-day SMA, blue, are giving support to Ethereum price at $1,313 and $1,320, respectively.
The MACD (Moving Average Convergence Divergence) indicator position above the mean line reveals a growing bullish impact on Ethereum price. Strong demand behind ETH is necessary for a successful attack on the supply area at $1,350. The path with the least resistance will remain to the upside as long as the MACD maintains a positive divergence from the moving average.
Ethereum whales hit the brakes as selling spree cools off
On-chain data from Glassnode may soon paint a positive picture for Ethereum price if investors holding 1,000 and more tokens stop selling and double down efforts to fill their bags. The chart below shows 6,313 addresses in that cohort, down from 6,516 on September 15.
Ethereum Number of Addresses with Balance ≥ 1k
If the line curve (blue) in the chart above flips the gradient to the upside, Ethereum price will be able to breathe and chart a recovery path. Nevertheless, whales must shun skepticism for Ethereum price to sustain an uptrend to $1,496 or even to $2,000. In other words, the previously dominant selling spree has to stop for ETH price to climb the ladder.
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 miner Marathon Digital stock gains ground after listing by S&P Global
Following Bitcoin miner Marathon Digital's inclusion as an upcoming member of the S&P SmallCap 600, the company's stock received an 18% boost, accompanied by an $800 million rise in market cap.
Ethereum traders show uncertainty, SEC delays decision on Invesco's ETH ETF application
Ethereum holdings on centralized exchanges continue to decline despite recent whale sales. With the SEC delaying its decision on Invesco's spot ETH ETF application, Ethereum ETFs look more unlikely.
TON crosses $200 million in Total Value Locked as its network integration continues to scale
In a recent development, the TON network surpassed $200 million in total value locked (TVL) on Monday after seeing a major boost through The Open League reward program.
Grayscale GBTC sees second straight trading session of inflows at almost $4 million
Grayscale spot Bitcoin ETF has recorded inflows of over $3.9 million on Monday, marks second successive trading session of infux. GBTC broke 77-day deadlock pattern on Monday with up to $63 million inflows.
Bitcoin: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.