The Ethereum exchange rate has rolled back from the $400 level within the range

The exchange rate of Ethereum (ETH) has been consolidating in the range since the beginning of September, and as long as the price does not break in one direction or another, the cryptocurrency will continue to trade without a clearly defined trend

Long-term levels

Ethereum is located between the important support levels of $370 and resistance levels of $455, which represent the 0.382%-0.5% Fibonacci retracement levels relative to the previous bearish move.

In early July, the price broke through the $370 zone, and on September 1 reached a maximum of $489.57. Then the quotes fell sharply, confirming the status of the above-mentioned support.

TradingView’s ETH Chart

On the daily chart, the range is limited to $310 and $395. The latter coincides with the 0.5% Fibonacci retracement level relative to the bearish move and provoked a pullback on October 12.

At the same time, the cryptocurrency broke through the downward resistance line, and technical indicators paint a bullish picture, while the MACD entered positive territory.

A break of the $395 level will indicate the presence of an uptrend and open the way to a longer-term resistance of $455.

TradingView’s ETH Chart

Short-term dynamics

Cryptocurrency Trader @TradingTank he shared on Twitter a chart of Ethereum, which indicates the prospect of breaking the current downward wedge with a movement towards the $400 and $420 levels.

Source: Twitter

However, since the tweet was published, the cryptocurrency has broken a wedge down and returned to the level of the 0.5% Fibonacci retracement relative to the bullish move, confirming its status as support, which may mark the beginning of a rebound.

The price follows the short-term downward resistance line. The dynamics of ETH relative to the 0.5% correction level and the resistance line will determine the direction of the short-term trend.

TradingView’s ETH Chart

Wave analysis

The wave analysis of Ethereum does not give a clear idea of the future vector of price movement. It seems that the movement from the low of September 4 is of a corrective nature and is implemented in the form of W-X-Y (blue color on the chart). If so, the quotes are now approaching the end of the C sub-wave (orange) inside the Y wave.

The ratio of the waves W:Y and A: C is 1:1, which indicates a high probability of vertex formation.

However, the sub-wave C can continue up to 1.61 relative to the length of the wave A with a maximum reaching around $420.

On the other hand, in the case of a fall below the minimum of the W wave at $ 323, it levels most of the bullish signals.

TradingView’s ETH Chart

So, at the moment, the direction of the Ethereum trend movement looks ambiguous due to the current consolidation, but the dynamics of the cryptocurrency for the period from September 4 looks more like a corrective structure than an impulsive one.

Disclaimer: Cryptocurrency trading involves a high level of risk and is not suitable for all investors. The opinions expressed in this forward-looking statement do not reflect those of the BeInCrypto editorial board.

Disclaimer


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