- January 9, 2024
- Posted by: Jackson Bennett
- Category: ethereum, News
ETH/USD is at the moment on an uptrend, trading above a bullish technical pattern that could mean further gains if it continues to do so.
ETH has the potential of rising and breaking past the $2,300 resistance level, which we might see as a new support level with 5 Percent and above trend potential.
Since the rest of the market trended up on October 18th, Ethereum (ETH) has been trading inside an ascending parallel channel price structure. Ethereum price now has a clear opportunity to rise 5% more than the current support level of $2,300.
Bullish Trend and Ascending Parallel Channel
Moreover, the price of Ethereum (ETH) has embarks on a bullish trend led by an ascending parallel channel. It provides more profit for the asset when and as long as those characteristics, benefits and functions remain confined to this technical formation. However, taking into account the current prognosis, the number one digital currency in terms of trading volume seems set to once again attempt an upward movement after a previous failure.
Technical Indicators Supporting Uptrend
Even using the different technical features, there is still potential for the price of the Ethereum to rise. Currently, the Relative Strength Index (RSI) is located at 69 and going up, which means that the rate is indeed increasing. The fact, again, that the number is below 70 will attest to the fact that ETH remains in a good standing since it has not reached the area of being oversold nor one that is likely to experience a dip.
Same as the previous chart, the Aspect of Investor Sentiment AO remains positive with all the green histogram bars. This shows that there are many people who are purchasing Ether with an aim of increasing its prices, and therefore the extant formulated strategies either have a positive or negative effect on the price of Ethereum.
Potential Breakout and Resistance Levels
Should prices not drop below current buying levels, the potential outcome is that Ethereum price will move above the top level of the chart pattern and then bear a bullish breakout through the $2,300 level, which represents the highest point of this triangle pattern. To maintain a consistent upward trend, Ether would need to establish the dominant trend. The strategy mentioned earlier is an effective approach for this purpose.
On-Chain Analytics Supporting Optimistic Outlook
Fundamental metrics and on-chain analytics in support of optimistic narrative
On-chain fundamental factors, including a decrease in new deposit transactions and fewer funds on exchanges, are contributing to the positive outlook for Ethereumโs price. The likelihood of deposit transactions indicating higher prices is indicative of greater short-term selling pressure, while the absence of such activity indicates no intention to sell in the market.
Falling exchange inflows explain such a view, which means that investors are no longer sending their #ETH to the exchanges. At the moment, there are no strategies towards doing for the weeks, months, or years to come.
Impact of Tether (USDT) Market Capitalization
The changing numbers suggest that the latest market capitalization of Tether (USDT) stablecoin indicates a potential influx of money into the Ether market, signaling interest to buy.
Potential Downside Risks
However, if the selling pressure were to increase, it is likely that investors would be keeping their gains intact after a significant boost, which could result in ethereal price declines. The midline of the channel intersection of ETH at $2,143 may experience a directional bias towards tp, which could result in the loss of confluence support. Regardless of the situation, we will disavow any deviation from the upward trend that initially appeared.
Support Levels and Downtrend Confirmation
The ETH/USD could extend south towards $2,029 before switching to a positive trend. An Euler oscillator bearish closure below the midpoint of this range at $1,935 would confirm the ongoing distribution pattern.
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