Ethereum price analysis for 23/10/2024
2 min readThe provided chart shows Ethereum experiencing a clear downward trend, with prices testing key support levels. Initially, Ethereum fell from around $2,640 and faced significant selling pressure, reaching a low of $2,605. The chart shows intermittent recoveries, with short bounces near the $2,610 level, but the upward momentum failed to sustain, suggesting strong resistance at $2,615 and $2,620.
Support and Resistance:
- Support Zone: Around $2,605 – $2,610
- Resistance Levels: Between $2,615 and $2,625
The price currently hovers near the $2,610 support level, and failure to hold above this could lead to a retest of lower levels around $2,600 and below. If Ethereum can break above $2,615, the next target would be $2,620 and potentially $2,625. However, the overall trend is bearish, and Ethereum needs to break above the resistance to reverse this trend.
This suggests that further consolidation or a continuation of the downtrend may occur unless bulls can push the price above the key resistance zones.
- RSI (Relative Strength Index): The RSI is at 31.93, which suggests oversold conditions. Values below 30 typically indicate that the asset is oversold, meaning a potential reversal to the upside may occur.
- Bollinger Bands: The price is currently trading near the lower band, indicating that Ethereum is potentially oversold and could bounce back toward the middle band (20-period moving average) or the upper band.
The RSI-based Moving Average (MA) shown in the chart is a smoothing of the RSI to help identify trends more clearly. The yellow line on the RSI section of the chart represents the 14-period moving average of the RSI.
When the RSI crosses above its moving average, it can indicate bullish momentum, whereas a cross below signals bearish momentum. As the RSI is currently around 31.93 and below its MA, it suggests bearish momentum, further reinforced by the overall price action.
Conclusion:
Currently, Ethereum is experiencing bearish momentum, indicating potential downward pressure in the short term. This trend is consistent with the price action shown in the chart, where Ethereum struggles to break above key resistance levels. If the RSI and its MA start to rise, it could signal a shift in sentiment, but for now, bearish conditions are prevailing.
