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31 October, 2024

Ethereum Price Analysis: Is a New Bull Run on the Horizon?

31 October, 2024

Ethereum Price Consolidates Gains: Is It Ready for Another Push?

Ethereum (ETH) has recently exhibited a renewed surge in price, pushing past the $2,600 resistance level. This climb followed a consolidation period after the cryptocurrency broke above the $2,650 zone. Currently, ETH is trading comfortably above $2,600, supported by the 100-hourly Simple Moving Average, and has established a key bullish trend line with support at $2,540 on the hourly chart. This suggests a potential for further gains in the near term.

Ethereum Price Eyes More Gains

Ethereum’s recent price action mirrors that of Bitcoin, exhibiting a similar pattern of base formation and upward movement. After building a base above the $2,550 mark, ETH surged past the $2,600 and $2,620 resistance levels, ultimately breaking through the $2,650 barrier. The price reached a high of $2,719 before entering a consolidation phase. This consolidation followed a minor dip below the $2,680 level, retracing to the 23.6% Fibonacci retracement level of the upward move from the $2,489 swing low to the $2,719 high.

Ethereum’s current position above $2,600 and the 100-hourly Simple Moving Average, along with the bullish trend line, indicate potential for further upward momentum. However, the price faces hurdles near the $2,650 mark. The first major resistance lies at the $2,700 level, with the primary resistance forming near $2,720. A decisive breakthrough above the $2,720 resistance could propel the price towards the $2,880 resistance level. Further gains beyond $2,880 could potentially lead to a rally towards the $3,000 resistance zone.

Potential for Downside Correction

Should Ethereum fail to surpass the $2,650 resistance, it could trigger a downward correction. The initial support for this correction lies around the $2,600 level and the 50% Fibonacci retracement level of the recent upward wave. Further support is positioned near the $2,540 zone. A clear break below $2,540 could push the price toward the $2,500 level, with potential further declines leading to the $2,450 support level. The next significant support level sits at $2,320.

Technical Indicators

The Hourly MACD for ETH/USD is currently losing momentum within the bullish zone. The Hourly RSI for ETH/USD is above the 50 level, indicating bullish sentiment.

Key Levels

Major Support Level: $2,600
Major Resistance Level: $2,650

Overall, Ethereum’s price action suggests potential for further upward movement, particularly if it can break through the $2,650 resistance. However, a failure to do so could lead to a downward correction. Keep a close eye on the key support and resistance levels outlined above for insights into the short-term price direction of ETH.