Ethereum (ETH) Shows Bullish Signs Despite Failure to Break September High

ETH has risen since September 21, but has still passed the September high of $ 4,027. Despite this setback, it is showing many bullish signs and will soon return to the top.

A look at the weekly ETH chart offers many opposite possibilities.

Between May 10 and August 30, ETH created a double-top sample. This is generally viewed as a bearish pattern that can lead to a trend reversal. This pattern is also linked to a bearish divergence in the RSI. The RSI is a momentum indicator and the fact that it is making a lower high while price is making a double high is a sign that the upward momentum is not accompanied by increased buying momentum.

However, ETH has crossed the supertrend resistance line, which is currently bullish (green). Supertrend is an indicator that is created from absolute highs and lows of the price movement and determines whether the trend is bullish (green) or bearish (red).

Since the indicator shows inconsistent results, it is necessary to look at the lower time frames to see the trend clearly.

Bullish ETH indicators point to a retest of the September

ETH diagram | The source: TradingView

Breakout is underway

The daily chart shows ETH is currently trading above $ 3,600, with the last resistance before the September high at $ 4,027. The USD 3,600 area is both a horizontal resistance and the supertrend resistance line (red circle).

However, unlike the weekly timeframe, the technical indicators on the daily chart are bullish.

The MACD, which was created from the short and long-term moving averages (MAs), is now in positive territory as the histogram rises. This means that the short-term trend is increasing faster than the long-term trend.

The RSI is also moving above 50. The RSI is a momentum indicator and movements above or below the 50 line can be taken as an indication of an upward / downward trend.

Bullish ETH indicators point to a retest of the September

ETH diagram | The source: TradingView

Trader IncomeSharks sketched an ETH chart showing that price bounced off the supertrend support line and is about to break the descending resistance line. It has since moved across that line and tried to break out of the $ 3,600 area.

Hence, the most likely scenario is an outbreak.

1633969021 958 Bullish ETH indicators point to a retest of the September

The source: Income Sharks

Counting the waves of ETH

The ETH wave count offers a bullish outlook with a warning of short-term uncertainty.

While it is clear that ETH has completed a 5-wave bullish impulse (marked green), it is uncertain whether the correction has ended.

The strong move that drove the price up has completed, meaning the trend is now up and the next down move is just a correction in response to the up move.

Another scenario shows that ETH is still in Part B of the ABC correction structure. After another rally towards September highs, prices should fall back to September lows.

However, the long-term move will not be affected as another rally is likely to follow.

eth

ETH diagram | The source: TradingView

The 2-hour chart is more suited to a bullish scenario.

ETH broke out of the parallel channel, which was rising for a short time, and has repeatedly confirmed it as support (green).

As long as the price does not fall behind within the channel, a bullish scenario is very likely.

eth

ETH diagram | The source: TradingView

ETH / BTC

The ETH / BTC pair offers a bearish outlook. The first reason is that ETH fell back into the ascending parallel channel, which lasted from January to April.

An outbreak above the channel (green) signals the ETH to start an upward trend. However, it fell back on the channel and signaled a correction.

MACD and RSI both provide bearish signals. MACD is negative while RSI is below 50.

The next support zone is 0.0575 BTC. This is the horizontal support area and coincides with the center line of the above channel.

eth

ETH diagram | The source: TradingView

You can see the ETH price here.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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Ethereum (ETH) Shows Bullish Signs Despite Failure to Break September High

ETH has risen since September 21, but has still passed the September high of $ 4,027. Despite this setback, it is showing many bullish signs and will soon return to the top.

A look at the weekly ETH chart offers many opposite possibilities.

Between May 10 and August 30, ETH created a double-top sample. This is generally viewed as a bearish pattern that can lead to a trend reversal. This pattern is also linked to a bearish divergence in the RSI. The RSI is a momentum indicator and the fact that it is making a lower high while price is making a double high is a sign that the upward momentum is not accompanied by increased buying momentum.

However, ETH has crossed the supertrend resistance line, which is currently bullish (green). Supertrend is an indicator that is created from absolute highs and lows of the price movement and determines whether the trend is bullish (green) or bearish (red).

Since the indicator shows inconsistent results, it is necessary to look at the lower time frames to see the trend clearly.

Bullish ETH indicators point to a retest of the September

ETH diagram | The source: TradingView

Breakout is underway

The daily chart shows ETH is currently trading above $ 3,600, with the last resistance before the September high at $ 4,027. The USD 3,600 area is both a horizontal resistance and the supertrend resistance line (red circle).

However, unlike the weekly timeframe, the technical indicators on the daily chart are bullish.

The MACD, which was created from the short and long-term moving averages (MAs), is now in positive territory as the histogram rises. This means that the short-term trend is increasing faster than the long-term trend.

The RSI is also moving above 50. The RSI is a momentum indicator and movements above or below the 50 line can be taken as an indication of an upward / downward trend.

Bullish ETH indicators point to a retest of the September

ETH diagram | The source: TradingView

Trader IncomeSharks sketched an ETH chart showing that price bounced off the supertrend support line and is about to break the descending resistance line. It has since moved across that line and tried to break out of the $ 3,600 area.

Hence, the most likely scenario is an outbreak.

1633969021 958 Bullish ETH indicators point to a retest of the September

The source: Income Sharks

Counting the waves of ETH

The ETH wave count offers a bullish outlook with a warning of short-term uncertainty.

While it is clear that ETH has completed a 5-wave bullish impulse (marked green), it is uncertain whether the correction has ended.

The strong move that drove the price up has completed, meaning the trend is now up and the next down move is just a correction in response to the up move.

Another scenario shows that ETH is still in Part B of the ABC correction structure. After another rally towards September highs, prices should fall back to September lows.

However, the long-term move will not be affected as another rally is likely to follow.

eth

ETH diagram | The source: TradingView

The 2-hour chart is more suited to a bullish scenario.

ETH broke out of the parallel channel, which was rising for a short time, and has repeatedly confirmed it as support (green).

As long as the price does not fall behind within the channel, a bullish scenario is very likely.

eth

ETH diagram | The source: TradingView

ETH / BTC

The ETH / BTC pair offers a bearish outlook. The first reason is that ETH fell back into the ascending parallel channel, which lasted from January to April.

An outbreak above the channel (green) signals the ETH to start an upward trend. However, it fell back on the channel and signaled a correction.

MACD and RSI both provide bearish signals. MACD is negative while RSI is below 50.

The next support zone is 0.0575 BTC. This is the horizontal support area and coincides with the center line of the above channel.

eth

ETH diagram | The source: TradingView

You can see the ETH price here.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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