Ethereum (ETH) – Trying to stretch the recent recovery in the short-termPosted on Monday, September 5 2022 at 8:19 pm GMT+0000
Ethereum (ETH) is taking a breather following the recent impressive rebound that saw the token slicing through the 2/1 Gann fan angle. Encouragingly, the bulls’ fortunes have improved following the move, but downside risks have not fully evaporated since the last positive thrust was not enough to drive the price above Friday’s high of 1,650.
Additionally, the oscillators are reflecting a moderate increase in the positive momentum as the TSI has stepped above its moving average in the positive region while the ROC is sustaining its upwards path beyond its equilibrium level.
In order to boost gains, the buyers will need to generate sufficient traction to steer the price initially for a test of the recent top at 1,650. But that is not all, they will have to overshoot this obstacle to confidently march towards the 25th of August high of 1,722. Next, they will propel towards the 8th of August high of 1,818.
On the downside, the bears will need to squeeze the price back below the 2/1 Gann fan angle and most importantly underneath the congested area of lows stretched from the 20th of August at 1,523, located a short distance below the 20 and 50-period simple moving averages, in order to reclaim command. In such a scenario, they will head to challenge the August 29th of 1,420. By cracking that strong floor, the sell-off could stretch towards the 26th of July bottom of 1,356.
To conclude, Ethereum has stepped beyond the 2/1 Gann fan angle, increasing its capacity to stretch the recent recovery. Yet, only a sustainable move beyond 1,650 could confirm more significant bullish developments.