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▲ Ethereum (ETH), US Dollar (USD)/ChatGPT Generated Image
Ethereum (ETH) has entered a breather after its surge in August, but the upward structure has not yet collapsed.
According to U.Today on September 11 (local time), Ethereum surged from approximately $1,900 to over $2,500 in August, an increase of about 37%. Since then, it has been trading sideways below the $2,500-$2,560 resistance line. Long-term moving averages are formed around $2,190, $2,148, and $2,115, respectively. The nearest dynamic support is $2,362.
The technical structure still leans towards an upward trend, as Ethereum is significantly above its major long-term moving averages. The upward structure formed after the August breakout is also maintained. A Reuters analysis cited in the article suggested that the current trend could lead to a bull flag. However, it noted that if it falls below $2,350-$2,360, the bullish structure could be significantly weakened.
Overheating concerns have largely dissipated. The Relative Strength Index (RSI) has fallen to around 58 from the overbought zone, meaning the short-term overheating accumulated during the vertical ascent in August has cooled down. On the other hand, the continuous decline in the RSI and repeated failures to break above the $2,500 mark were presented as signs of weakening short-term upward momentum.
The key defense zone is $2,400-$2,360. Analysis suggests that maintaining this price range could preserve the existing upward structure. Conversely, if the daily closing price forms below approximately $2,350, the current bullish setup could be significantly damaged. On the upside, breaking $2,560 is crucial. If this resistance line is breached, $2,600 and higher resistance levels could open up again.
An external variable that will determine the short-term direction is the US Consumer Price Index (CPI). U.Today analyzed that the inflation data to be released on Friday could act as a variable determining which direction Ethereum will break out of its sideways trading range. Technically, defending $2,350 and breaking $2,560 are key criteria for the next movement.
[Article Key Summary]
-Ethereum surged about 37% in August and is now trading sideways below the $2,500-$2,560 resistance.
-Maintaining $2,400-$2,360 will preserve the upward structure, but a daily close below $2,350 could damage the bullish setup.
-Breaking $2,560 could open up $2,600 and higher resistance levels again.
*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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