Ethereum Technical Analysis: ETH Price Holds Key Support, Eyes Upper Breakout

On Oct. 21, 2024, ethereum holds steady at $2,706, sticking within a key trading zone after recently hitting a high of $2,769. Technical indicators across various timeframes paint a mixed picture, as oscillators suggest caution while moving averages still point to a largely bullish trend. As ether hovers between support and resistance, traders should stay vigilant for any shifts in price action.

Ethereum

Zooming in on the daily chart, ethereum’s uptrend capped at $2,769 before seeing a minor pullback. With the relative strength index (RSI) sitting comfortably at 63.5, the market isn’t signaling overbought conditions, though the potential for selling pressure increases with any further climb. Despite a drop after the recent high, the 10-day and 20-day exponential moving averages (EMAs) remain above the current price, reflecting ongoing positive momentum.

ETH/USD daily chart.

On the 4-hour chart, the price correction becomes clearer, with several downturns forming after a brisk rally. This coincides with the Stochastic oscillator’s high reading of 91, hinting at an overbought situation. Yet, ethereum is managing to find support in the $2,640-$2,700 range, aligning with the 30-period simple moving average (SMA) for this timeframe. The reduction in volume during this pullback suggests the correction lacks a strong selling force, at least for now.

ETH/USD 4-hour chart.

In the 1-hour chart, a short-term dip is evident as consecutive red candles dragged the price down to $2,700. A small upswing hints at a possible stabilization attempt, but the awesome oscillator remains neutral, indicating that further signs of a trend reversal are still needed. Meanwhile, short-term moving averages, like the 10-period exponential moving average (EMA), are providing support, reinforcing the consolidation pattern.

Key technical levels warrant close attention in the coming sessions. The $2,640-$2,700 range is a crucial support zone, backed by multiple moving averages. On the other side, the recent peak of $2,769 stands as a critical resistance point. A bullish breakout beyond this level could pave the way for additional gains, while a failure to maintain support might push the price down toward $2,550.

Bull Verdict:

The overall technical picture leans bullish, supported by multiple moving averages signaling buy conditions and the price holding key support zones. If ethereum maintains support near $2,640-$2,700 and gains momentum from oscillators turning positive, a breakout above $2,769 could pave the way for further gains.

Bear Verdict:

While the trend remains technically positive, caution is warranted. The high readings on certain oscillators and the loss of bullish momentum at recent highs hint at potential exhaustion. A decisive break below $2,635 per ether, paired with sell signals from oscillators, could usher in a deeper correction toward the $2,550 level or lower.

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