Ethereum (ETH) – clearly upbeat technical picture
Posted on Sunday, October 31 2021 at 9:07 pm GMT+0000Ethereum (ETH) – Long-term analysis
Ethereum (ETH) stepped on the 20-day simple moving average earlier this week and finally plotted a new all-time high last Friday at 4467 before pausing the rally.
The technical picture is still clearly upbeat, and the climbing 50- and 100-day simple moving averages are endorsing the more than three-month uptrend confirmed after late July’s reversal.
However, the coin is still actively testing a crucial resistance area, and only a decisive close above the 4500 key level could further accelerate the rally in the direction of the Fibonacci projection level of 4035-2642 bearish wave around 4900.
Oscillators are currently questioning any significant trend improvement. Both the RSI and the stochastic, though remaining in their positive territories, have failed to post higher highs and painted lower lows, in contrast to the price action. The pattern reminds a bearish divergence structure and could be a signal that the bears are preparing to step in.
What could trigger a bearish corrective move, is a close below the 20-day simple moving average, and most importantly below the 4272 low. In this case, the price could dive towards the 50-day simple moving average before meeting the 50% Fibonacci retracement level at 3338 and the adjacent 100-day simple moving average, a break of which could downgrade the current structure and see a retest of the September low of 2642.
