The Ethereum market kicked off this month with a significant drop, plummeting to $2,351.01 by October 3. However, a resurgence of buying pressure on October 4 led to a price increase. Currently, the market is displaying a slight bullish trend.
Will this newfound momentum drive Ethereum to higher levels? Numerous technical analysts have provided positive insights. Let’s delve into what they are observing.
Ethereum Follows Bitcoin’s Recovery
Earlier this month, the Israel-Iran crisis triggered a decline in Bitcoin, causing the price to fall to $60,628. This downward trend also affected Ethereum. On October 4, Bitcoin buyers regained control, pushing the price from $60,776.02 to $62,102.19 in a single day. Since then, Bitcoin’s price has been fluctuating between $62,000 and $62,900, currently resting at $62,375.
A comparison of the Bitcoin daily chart and the Ethereum daily chart indicates that Ethereum has been mirroring Bitcoin’s movements. Like Bitcoin, Ethereum is currently in the process of recovering from the recent dip it experienced at the beginning of the month.
Technical Outlook: A Bullish Breakout Ahead?
Crypto analyst Trader Tradigrade points out that Ethereum has been following an ascending trendline since June 2022. He also highlights the formation of symmetrical triangles along this trendline, often signaling an upcoming bullish breakout. These factors suggest that Ethereum may be on the brink of a significant upward movement.
Ethereum’s Leverage Ratio and Market Activity
The Ethereum Estimated Leverage Ratio (All Exchanges) chart reveals a sharp increase in the ratio. On January 4, it was a mere 0.21. Between April 22 and June 5, the ratio saw a steep climb, going from 0.233 to 0.36 in a short span. Since then, the ratio has been fluctuating between 0.31 and 0.39, with the current ratio standing at 0.35.
A high Estimated Leverage Ratio typically indicates impending price volatility. While the open interest of ETH has slightly decreased, Ethereum trading volume has surged by 120%.
Overall, traders seem to be positioning themselves for the next major price movement in the Ethereum market.
Ethereum Support Levels to Watch
Crypto analyst Ali recently emphasized the significance of the $2,300 support level for Ethereum. He believes that if Ethereum can maintain this level, the price could potentially reach $6,000 in the near future. However, he cautions that if ETH drops below $2,300, it could plummet as low as $1,600.
Currently, there are no indications of Ethereum dropping below the $2,300 mark. However, it is essential to monitor the market closely to observe how it responds to the patterns identified by technical analysts.
For the latest updates on Ethereum’s price momentum, stay tuned to Coinpedia!