Ethereum (ETH), trend not broken... 'Catching breath' around $3,000

▲ Ethereum (ETH)/AI-generated image

After unleashing its strongest rally in recent months, Ethereum (ETH) is undergoing a consolidation process around the $2,700 mark, laying the groundwork for reclaiming the $3,000 high.

U.Today reported on October 1 that Ethereum's upward momentum was temporarily limited after hitting a resistance wall near $2,800, but it continues to maintain a solid sideways trend around $2,702. Despite facing selling pressure at a short-term resistance level, the technical structure on the daily chart appears significantly more robust compared to last summer. The most decisive structural change began with an upward breakout from the long-term confined range of $1,850 to $1,950. Immediately after this breakout, the price swiftly broke through $2,200 and then recorded further gains up to the $2,500 level. Unlike the previous low trading volumes, trading volume surged sharply during each upward phase, firmly supporting the reliability of the breakout.

Currently, Ethereum is forming a new price range between $2,650 and $2,800. This sideways phase is noteworthy because sellers have completely failed to push Ethereum back into its previous trading range of $2,400 to $2,500. Analysis suggests that buyers are successfully absorbing selling pressure at higher price levels, securing downward rigidity.

Price momentum indicators also maintain a healthy adjustment trend. The Relative Strength Index (RSI) has cooled down from its previous overheated zone to the upper 50s and early 60s. Unlike typical scenarios where a declining RSI leads to a sharp price drop, Ethereum has stably held onto most of its gains. This indicates a successful rebalancing of overheated momentum without compromising the price structure.

To achieve further price expansion, reclaiming the $2,750 to $2,800 range is essential. If Ethereum closes above $2,800 on the daily chart, it could form a new high and open the gateway towards the psychological key price of $3,000. Conversely, if the $2,650 support level breaks, there is a risk of a retreat to $2,600 and even to the strong support zone of $2,450 to $2,500. However, experts diagnose the current sideways phase as a healthy consolidation period after an upward breakout, rather than a trend reversal.

Ethereum, after hitting $2,800 resistance, is orderly absorbing short-term selling pressure around the $2,700 level. Market attention is focused on whether Ethereum, having resolved its RSI overheating, can break through the $2,800 resistance and head directly towards the $3,000 high.

[Article Key Summary]

-Ethereum (ETH) faced $2,800 resistance but traded around $2,702, demonstrating a robust technical structure compared to summer.

-Despite the Relative Strength Index cooling down to neutral territory, it defended the $2,650 to $2,800 range without a price drop.

-A daily close above $2,800 is expected to lead to a $3,000 rally, while a break below $2,650 is anticipated to test the $2,450 support line.

*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.*