Ethereum (ETH), Countdown to Break Out of Trading Range... Preparing to Reenact August Surge

▲ Ethereum (ETH)

Ethereum (ETH) is expected to conclude its sideways movement within a trading range, which followed its August surge, and soon enter a watershed moment to determine its direction. Analysis suggests that the compression phase, testing key price levels both above and below, is nearing its end, while the technical support structure on the daily chart remains robust.

According to crypto media outlet U.Today on September 18 (local time), Ethereum continues to trade around $2,455 after testing the $2,400 support level. The trading range formed after the August surge, which saw the price rocket from the $1,900 level to above $2,500, is currently a key feature of the chart. While sellers are struggling to push the price below $2,400, attempts to break through the $2,520 to $2,560 range have repeatedly met resistance, indicating a typical price consolidation pattern.

Short-term momentum indicators have cooled down and returned to the neutral zone. The Relative Strength Index (RSI), which soared into the overbought territory during the explosive surge, has now settled near the neutral 50 mark. The recent surge in trading volume coinciding with downward volatility suggests that the $2,400 support level is not an impregnable defense, but the alignment of major moving averages still underpins a positive structure.

Long-term moving averages form a dense support layer between $2,160 and $2,220, with the nearest key defense line located at $2,280. Ethereum maintains a stable trend above its major long-term moving averages, indicating that its downside defense remains solid.

Market experts diagnose that extreme volatility could be triggered depending on whether the price breaks out of the upper or lower bounds. If the closing price falls below $2,360, there is a risk of an accelerated short-term correction towards the $2,280 support level. Conversely, to resume the August rally, Ethereum must reclaim $2,500 and then break through the strong resistance level of $2,560. It is observed that the consolidation phase will continue until one of these boundaries is breached.

[Article Key Summary]

-Ethereum has entered a convergence phase, concluding its sideways movement within a trading range between $2,400 and $2,560 after its August surge.

-The Relative Strength Index has cooled down to the neutral 50 line, and major long-term moving averages maintain strong support layers.

-If it breaks below $2,360, it could fall to $2,280, but if it breaks above $2,560, the upward rally is expected to resume.

*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.*