Ethereum ETH Price Analysis: Weekly Chart RSI readings above level-88 would send ETH price into a parabolic trajectory

EthereumEthereum

Ethereum remains the second leading cryptocurrency with a market value of $477billion at the time of this report.

The number one smart contract ecosystem has become more compelling because of the recent London upgrade called EIP- 1559, in preparation for the transition to ETH 2.0.

One of the most essential features of the EIP- 1559 is the improvement of the inflation rate by controlling how fast the supply of Ethereum can expand as well as the stabilization of transaction fees on the network.

In general, the call for ETH 2.0 tackles the problem of scalability. This development could lead to high speed and faster transactions up to 3000 transactions per second. This would be accompanied by a switch from the usual Proof of work mechanism to Proof of stake.

Also, recent on-chain analytics shows that over 600,000 ETH has been burned by the Ethereum network, believed to have led to the new all-time high. 

On the other side of the spectrum, Ethereum miners are unhappy as EIP- 1559 (an energy-efficient algorithm that replaces the computationally proof of work mechanism) burned gas fees that were supposed to be used to pay miners.

Read on as we uncover the technical chart patterns and significant price levels driving the ETHUSDT.

Ethereum ETH Weekly Chart Analysis

ETH chart

While trading within a rising and expanding channel, the ETHUSDT signals a bear-trap candlestick formation on 20 September and is shy of breaching the 10 May ’21 all-time high.

The on-chart RSI suggests that we should expect a third regular bearish divergence pattern, even after the native token for the smart contract ecosystem sets a new ATH.

RSI values continue to hover above level-25, with high readings above level-75, therefore indicating an uptrend.

Ethereum ETH Daily Chart Analysis

ETH chart

After the RSI exits oversold level on 22 September, the ETH price breaks above a bearish inside bar resistance of $29652.00 on 26 September setting the number two cryptocurrency by market cap into an uptrend.

The bulls are clearly in control of the daily time frame as the RSI prints higher readings above level-25.

Ethereum ETH 4HR Chart Analysis

Eth chart

A final view from the intraday 4HR time frame shows the RSI[4] printing lower values below level-25, therefore confirming the troughs on the daily time frame.

The RSI reading of level-23 signals a long entry into the ETHUSDT keeping the ETHUSDT exchange rate trading within the parallel rising channel formed from opposing bearish and bullish divergence patterns.

Using the 4HR time frame as a reference into the uptrend on the daily time frame gives precise entry signals into the bullish campaign.

The bears can seize control of the ETHUSDT exchange rate if the price can creep below the $3621.30 bullish divergence support.

Ethereum ETH Intraday Levels

  • Spot rate: 4102.62
  • Mid–Term Trend [H4]: Strong Bullish
  • Volatility: High
  • Support: $3621.30, $3268.00, and $2780.80
  • Resistance:  $4396.00

The post Ethereum ETH Price Analysis: Weekly Chart RSI readings above level-88 would send ETH price into a parabolic trajectory appeared first on Coingape.

Publication date: 
10/24/2021 - 06:29
Author: 
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