Ethereum In Tight Range – Will Pressure Push ETH Below $1,250?

Ethereum, the undisputed ruler of the altcoin market, is now stuck in a bear market as the coin struggles to break the $1,300 resistance level. However, the current market price is $1,302.87, just 0.22 percent more than the key psychological buying point.

Despite how good this is, the way the market is moving at the moment, the bear market is likely to continue this month, which is not good news for ETH.

The odds of a bear market recovery for ETH are slim due to the dire state of total economyAccording to the Guardian newspaper.

In this much-touted “Uptober,” the token is likely to face more misery than usual. However, what do the graphs show?

Trading in a narrow range

At the time of writing, the altcoin was expected to be trading in a narrow range. Prior to that, the price of ETH fluctuated over the past 25 days between $1,188 and $1,411. As this coincides with the Federal Reserve raising interest rates, it illustrates the particularly turbulent market conditions at the time.

As described earlier, the ether is currently following a scientific formation. This pattern is a bearish signal that matches the previous price action. The price dropped to $1,300.35 as we anticipate significant price action at or near the price level.

Chart: TradingView

With the current sideways market movement, technical analysis is also quite neutral. The Momentum indicator shows a sharp decline in the wake of the market crash on September 13, which was followed by a recovery and stabilization from September 21 to the present.

The Chaikin Money Flow Index, which currently stands at 0.05, is positive, indicating that the bulls are in control of the market. The RSI values ​​on the stochastic also confirm this strong bullish momentum.

With the RSI near oversold territory, it reinforces the bullish momentum seen in other technical indicators, giving investors a good buying opportunity.

Ethereum: Is the price likely to reverse?

Although the price narrowed to a certain point, ETH may repeat the previous high in July and August, where it created three bottoms before rallying. As of this writing, the altcoin has already created these three bottoms and may be on its way to an upward trend.

Despite this, the bulls should continue to exercise caution given the challenging market conditions. If the market closes today in the green above $1,300, we could see a rally that tests or breaks the $1,345 resistance.

ETHUSD pair trading at $1320 on the weekend chart | Featured image from TradeMap, Chart:

Disclaimer: The analysis represents the author's personal views and should not be construed as investment advice.

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