- Ethereum is holding strong above key support at $2,375, which could indication a rise.
- The RSI is moving up from the oversold zone, suggesting buying desire.
- A breakout above $2,788.5 could confirm a new upward trend for the coin.
Ethereum is right now trading at $2,451.77, reflecting a slight increase of 0.24% over the previous day. Despite the day's trade shifts, the coin has shown resilience, maintaining a stable position above the $2,400 mark. The market cap has edged up by 0.22%, standing at $294.97 billion, securing Ethereum's position as the second-largest digital money by market capitalisation.
Trading volume for Ethereum has risen considerably, with a 55.40% increase, totalling $17.32 billion around the clock. This increase in trading activity has pushed the volume-to-market cap ratio to 5.88%, indicating robust market participation. The circulation remains steady at approximately 120.31 million ETH, consistent with its total supply.
Source: coinmarketcap
The 24-hour chart reveals how the token has seen flactuations . The coin started the day strong at around $2,444 but experienced a rapid drop, hitting a low before recovering swiftly.
ETH continues to be a dominant force in the crypto economy, accounting for 14.6% of the total market, following Bitcoin, which maintains a dominance of 56.5%. The trading performance today also highlights tokens prospective resilience against market dips, reflecting investor confidence in the asset. As the token holds its ground, market participants will be closely watching for any further movements that could indicate either consolidation at current levels or a push towards new highs.
Ethereum Price Analysis: Potential Reversal as Technical Indicators Align
The token is showing signs of a possible bullish reversion, as technical indicators align to suggest an upward trajectory. As of the latest data, ETH is valued at $2,448.9, marking a 1.10% increase. This follows a period of substantial swings and rebound, with the cost changes confined within a broader descending channel since its peak earlier in the year.
The graph indicates a distinct trend where Ethereum has been moving within a descending triangle. The coin's value has recently touched the lower boundary of this triangle, which is marked by points C and D, where it found stability near the 61.8% Fibonacci retracement mark at $2,375. This limit has historically acted as a critical support zone, and Ethereum's ability to maintain above this level could be pivotal for its next move.
source : Tradingview
Further supporting the case for a reversal is the Relative Strength Index , which, despite showing negative divergence earlier, has started to curve upwards from the oversold region around 40.01. This suggests a weakening bearish momentum and the possibility of a bullish crossover if buying pressure increases.
The Bollinger Bands, which have recently contracted, signal a period of low volatility that could precede a breakout. The upper band, currently at $2,788.5, represents the next notable obstruction limit. A breakout above this point could push the currency towards higher targets, with the 78.6% Fibonacci level at approximately $2,788.5 acting as the next major hurdle.
This could possibly lead to a bullish reversal if ETH manages to pause preceding the declining triangle and hold above the 78.6% Fib stage.
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