Ethereum (ETH) looks to have found a bottom at long last. $2,000 may well have been that bottom, and $ETH is now starting to claw its way back up. $2,820 is the higher high that would turn the trend back around for the giant layer 1 cryptocurrency.
Has $ETH turned the corner
For $ETH investors, it’s been a long and painful six months, in which time the $ETH price has not only continued to fall against the dollar, but also against some of its layer 1 competitors.
The fact that a Spot Ethereum ETF was granted during this time, and has only had the effect up till now of net selling, has just rubbed salt into the wound.
Nevertheless, it might just be that $ETH has started to turn the corner, at least from a technical analysis perspective. From that $2,000 low, which was probably a bottom, the price has increased more than 17%, to its current price level of $2,433.
$ETH breaks the descending trend line
Source: TradingView
The short term time frame for $ETH shows that the price has broken the descending trend line, and has recently come back to confirm the break. Underneath the price now are the 0.786 fibonacci, which provided the support for the bounce, and the 0.618 fibonacci, which the price has now taken hold above.
The next very critical move for $ETH needs to be a break above the last local high at $2,820. This would confirm a higher high, and a new uptrend, and allow $ETH to head back to the upside.
Strong support, and momentum coming
Source: TradingView
On the weekly time frame, it can be seen how $2,300 (orange line) is now strong support. After breaking the trend line, the $ETH price is heading up to the first of the fibonacci levels at $2,550. Should this level be surpassed, an important band of horizontal resistance awaits (blue lines), from $2,800 to $2,900.
At the bottom of the chart, the Stochastic RSI is signalling a cross of the fast indicator line (blue), over the slow indicator line (red). It’s early days here, but if the two indicator lines start rising, and get above the 20 level, this would bring strong momentum into the $ETH price.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
