11 September 2024
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.
Featured image from DALL-E, chart from TradingView.com