Cryptocurrency News – The price of Ethereum (ETH), the largest altcoin in the cryptocurrency market, is approaching the long-term ascending support line that has been in place for 450 days.
Although the price action is bearish, the RSI is giving a similar bullish signal that it previously gave before a 145% increase.
Ethereum (ETH) price is approaching 450-day support
Technical indicators on the daily chart are pointing downwards. In April, the price diverged above the horizontal resistance area at $2,000. Failure to sustain this increase indicates a decline. So this means that buyers cannot sustain the increase and sellers step in.
In July, the price reconfirmed the $2,000 level as resistance and started the ongoing downtrend. ETH dropped as low as $1,550 on August 17 before rebounding so far.
Ethereum is currently approaching the ascending support line at $1,500. The line has been present since the entire upward move began in June 2022. More specifically, this line was valid for 450 days.
However, the line has not been touched since November 2022. A drop to this line would mean a 6% drop from the current price.
On the other hand, a retest of the $2,000 level would imply a 24% upside move.
Additionally, Ethereum founder Vitalik Buterin stated that despite significant technical advances, blockchain still has concerns about privacy, security and scalability.
Ethereum (ETH) price prediction: Will the trend turn upward?
Although the price movement is bearish, the RSI gives a decidedly bullish signal. Using the RSI as a momentum indicator, investors can determine whether the market is overbought or oversold and decide whether to accumulate or sell an asset.
Bulls have an advantage if the RSI reading is above 50 and the trend is upward, but if the reading is below 50, the opposite is true. On August 17, the RSI fell to 21, its lowest level since June 2022.
Since then, an increase has occurred and formed an upward trend. This is a type of bullish development in which an increase in momentum accompanies a price decline. As a result, it often leads to significant upward movements.
Moreover, the RSI has now moved out of the oversold zone. The last time this happened, there was a 145% increase and the price reached the highest level of the year.
Despite this bullish price prediction, a break from the ascending support line would confirm that the trend is still bearish. In this case, the price could decline another 30% and test the $1,100 support point.
