Ethereum price showed a bullish retest reversal, forming a V-shaped reversal.
The reversal bounce is close to the descending 50-day moving average.
Once the EMA is crossed, the uptrend can push the ETH market price to the $2,000 mark.
Ethereum (ETH) price has recently undergone an important correction as the price turned down from the 200-day moving average, inducing short pressure. This correction has also raised some doubts about whether it will break out of the descending channel.
During this correction, the price of Ethereum fell by 11%, testing the key support level of $1,500 at one point. However, with the reversal after successfully retesting this support level, the future outlook for the price of Ethereum has become optimistic.
The correction appears to mark the first challenge Ethereum faces in the “Uptober” season. However, with the successful retest and the overall market recovery over the weekend, Ethereum price is once again showing a bullish trend.
Over the past four days, Ethereum price has increased by 2.74% to nearly $1,600. Currently, Ethereum price is trading at $1,581.8, up 1.53% intraday, forming a bullish engulfing candle.
Given the continued upward momentum, the Ethereum market price is expected to test the 50-day moving average, which is $1,634. In addition, the improvement in market sentiment and the price reversal after the successful retest suggest high momentum in Ethereum's long-term upward trend.
Technical indicator analysis:
RSI indicator: As prices rose and broke through the 14-day moving average, the daily relative strength index (RSI) showed a sharp reversal. At this time, the daily RSI is close to the midline, indicating a possible bullish improvement in market sentiment.
EMA (Exponential Moving Average): Although we observed a death cross between the 50-day and 200-day EMA in early September, both indicators are still in a downtrend.
Will ETH price break through $2,000?
If a Bitcoin spot ETF is approved, market sentiment is expected to improve quickly and will have a positive impact on the price of Bitcoin and other cryptocurrencies. This could trigger a rally that would allow the price of Ethereum (ETH) to test the $2,000 level, especially in a strong bull market with rising sentiment.
However, if we see a reverse at the 50-day SMA, it could result in a delay in the uptrend and could lead to another test of the $1,600 support level.
