Ethereum (ETH) – Expected to attract further buying interest in the near-futurePosted on Thursday, October 27 2022 at 8:45 pm GMT+0000
Ethereum (ETH) skyrocketed more than 17% after breaching the ceiling of the one-month-old tight sideways range, before pausing the immense rally near a familiar resistance zone around 1,600.
The oscillators are suggesting that the bulls have claimed full control of the reins as the Awesome Oscillator is accelerating north of its zero mark and the MACD has sailed into the positive waters after overstepping its trigger line.
Thus, the buyers will become more confident that the ascent will gain more legs following a significant close above the currently confronted zone marked by the August 4th bottom of around 1,600. In such a scenario, those are expected to target the September 11th peak of 1,790. A more aggressive rally could last until the critical August 14th high at 2,031.
However, it is important to note that while expanding Bollinger bands usually indicate an increase in volatility, price action taking place outside the bands could signal extreme market conditions. The fact that the price is currently hovering beyond the bands, combined with the IMI’s presence inside its overbought territory, is increasing the likelihood of some downside corrections.
Hence, if the 1,600 zone proves to be a tough barrier for the price to overcome, the latter will slide back below the upper-Bollinger band to seek shelter around the August 29th low of 1,420. Lower, the 20-day simple moving average at 1,338 may try to deter additional declines towards the 1,220 – 1,190 resistance area.
Briefly, buyers may keep leading Ethereum in the medium-term, though to gain more fuel they will probably need to clear the 1,600 resistance region as well.