logo

FX.co ★ Ethereum consolidates above $1,300 and continues to grow in price: what to expect this week?

Ethereum consolidates above $1,300 and continues to grow in price: what to expect this week?

The Merge did not have a significant impact on Ethereum quotes, as a full-fledged transition to PoS is just beginning. A significant part of the DeFi sector is in transition and the main altcoin is waiting for several updates before the migration is fully completed.

The maximum value from switching Ethereum to PoS will become clear during the next bullish rally. Until then, the altcoin continues to fluctuate in the $1,200–$1,800 range. Over the past 24 hours, the cryptocurrency managed to slightly improve the situation and rise in price by 7%.

Ethereum Gives Bullish Signals

As of writing, Ether is trading at $1,380 and continues to be bullish. ETH ended the last trading day with a bullish momentum and a small green candle. Most of the buying volumes in the Ethereum network were already formed on September 27.

Ethereum consolidates above $1,300 and continues to grow in price: what to expect this week?

The cryptocurrency has come close to the $1,400 level, which is a key resistance zone. The asset has every chance to gain a foothold above this level at the end of the current trading day. However, it will be possible to talk about a local price reversal only if it successfully consolidates above $1,450.

ETH/USD Technical analysis

On the daily chart, ETH/USD is showing serious bullish signals. The RSI index has acquired an upward direction, indicating the formation of buying volumes. The MACD indicator is one step away from forming a bullish crossover and resuming upward movement.

See also: You can open a trading account here
Ethereum consolidates above $1,300 and continues to grow in price: what to expect this week?

A strong bullish signal is shown by the stochastic oscillator. The metric has been unable to overcome the oversold zone since September 14 but has subsequently realized a bullish momentum. The indicator has reached the level of 26 and keeps its upward direction.

From a technical point of view, the cryptocurrency is approaching the birth of a local upward trend. If it successfully consolidates above $1,450 at the end of the current trading day, the asset has every chance to develop success in the direction of $1,600–$1,800.

Reasons for the likely upward trend

The main reason for the likely upward trend of the cryptocurrency may be the correction of the US dollar index. The indicator reached a peak value of 114.5 for more than 20 years, after which it began to correct. Given that the DXY technical metrics are in a state of excessive overbought, a deeper correction should be expected.

Ethereum consolidates above $1,300 and continues to grow in price: what to expect this week?

There is also a gradual increase in trading activity. The number of unique addresses and transaction volumes are growing, which may indicate preparations for a local bullish movement. However, it is most likely that a clear jump in indicators will occur if the price successfully consolidates above $1,450.

Ethereum consolidates above $1,300 and continues to grow in price: what to expect this week?

The positive news was the publication of Stanford researchers with the concept of new standards for Ethereum tokens. The study involves the creation of standards for conducting reversible transactions. Management will be carried out by a decentralized system using a voting system.

Conclusions

Ethereum, Bitcoin and the entire cryptocurrency market are at risk of going on a local bull run due to the DXY correction. The gradual influx of funds into crypto funds hints at an improvement in the investment situation in the market. However, to confirm bullish intentions, Ethereum needs to gain a foothold above $1,450 at the end of the current trading day.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
Go to the articles list Go to this author's articles Open trading account