Bullish Signals Emerge For Ethereum: Price Rises Above Downward Trendline And Key MA Levels

Source Newsbtc

The cryptocurrency market is showing tentative signs of recovery, with leading assets like Ethereum (ETH) making modest gains in the past 24-hours. Following a sharp decline that saw ETH’s price plummet to $2,154 last Friday, the digital asset is now nearing the $2,400 mark, sparking optimism among investors.

Signs Of An Imminent Breakout To The Upside? 

In a recent social media post on X (formerly Twitter), Market expert Jesse Olson has highlighted several bullish indicators on Ethereum’s 8-hour chart, suggesting a potential continuation of this recovery. One key signal is a pending buy indication, which could facilitate a rebound to previously lost levels if macroeconomic conditions align favorably.

Olson also points out a bullish divergence on the 8-hour chart, which typically signals a shift in momentum toward the upside. Additionally, a potential reversal candle has appeared, indicating that if the current momentum persists, it could bode well for bullish investors looking to capitalize on this recovery.

In addition, the expert highlights that the Ethereum price is currently reclaiming the 200-week moving average (MA), along with recent trends in market indicators. The price has also broken above a downward trendline that has been in place since late August. 

However, sustaining this recovery will be crucial for validating these bullish signals. If Ethereum fails to maintain its upward trajectory, it could lead to a retest of lower support levels or result in price consolidation between the $2,100 and $2,300 range.

Ethereum Price Nears Key Resistance

Crypto analyst Daan Crypto Trades has echoed this sentiment, noting that Ethereum has bounced solidly from support levels. However, he cautions that trading within the $2,100 to $2,850 range may remain volatile. 

Daan contends in a social media post, that a consolidation above $2,850 would mark a significant bullish development for Ethereum, confirming a breakout from the current downtrend and setting sights on the key $3,000 level, which has not been reached since early August.

As of now, ETH trades at the top side of the descending channel at $2,383, recording gains of nearly 2% in the 24-hour time frame, according to CoinGecko data. 

This surge, however, is offset by a drop in trading volume for the second largest cryptocurrency on the market, which amounted to $12 billion over the past 48 hours, specifically a 15% drop compared to Monday’s trading session.  

Additionally, in longer time frames, ETH’s price is still suffering from the sharp declines witnessed over the past month, posting losses of 2.6% and nearly 7% in the fourteen and thirty day time frames, respectively. 

Ethereum

Featured image from DALL-E, chart from TradingView.com 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
USD/CHF remains depressed below 0.8000 amid a moderate market optimism The US Dollar is unable to put any significant distance from last week’s long-term low at  0.7960 area, as the pair remained capped below 0.8000 on Monday
Author  FXStreet
9 hours ago
The US Dollar is unable to put any significant distance from last week’s long-term low at  0.7960 area, as the pair remained capped below 0.8000 on Monday
placeholder
OPEC+ Announces Further Production Increase, Crude Oil Prices Likely to DropWTI prices are still about $12 below the previous Monday's high, as prices lack upward momentum due to easing Middle East peace tensions and OPEC+ members expecting another increase in production in August.
Author  Insights
9 hours ago
WTI prices are still about $12 below the previous Monday's high, as prices lack upward momentum due to easing Middle East peace tensions and OPEC+ members expecting another increase in production in August.
placeholder
Gold Price Forecast: XAU/USD failure to breach $3,300 brings $3,250 back into focusGold (XAU/USD) is bouncing higher on Monday, but the broader trend remains bearish, following a nearly 3% decline last week.
Author  FXStreet
10 hours ago
Gold (XAU/USD) is bouncing higher on Monday, but the broader trend remains bearish, following a nearly 3% decline last week.
placeholder
US Dollar Index (DXY) remains depressed below 97.00 on trade talks, US debt woesThe US Dollar has bounced up from three-year lows on Monday, but remains depressed below the 97.00 level.
Author  FXStreet
10 hours ago
The US Dollar has bounced up from three-year lows on Monday, but remains depressed below the 97.00 level.
placeholder
UK-US trade agreement is now in forceUK car export tariffs to the US cut from 27.5% to 10%, saving manufacturers hundreds of millions annually.
Author  Cryptopolitan
11 hours ago
UK car export tariffs to the US cut from 27.5% to 10%, saving manufacturers hundreds of millions annually.
goTop
quote