The price of the leading altcoin Ethereum has started to decline again after rising as much as 8 percent in the past day. The second largest cryptocurrency is eyeing to disperse a strong supply area at $1,350. According to analyst John Isige, this could be the start of a move that could push the coin to $1,496. Here are the details…
Altcoin price approaches bullish trend
The largest altcoin tested support at $1,230 for the second time since Sept. 22. Then a double bottom pattern appeared on the four-hour chart. According to the analyst, this bullish pattern often leads to a trend reversal. This gives traders the opportunity to take long positions in the ETH price. The double bottom pattern is formed after a long downtrend characterized by two “pits”. As the price bounces off the second trough, a bullish breakout occurs in Ethereum price. Through confirmation of this ascension, the process is reversed.
An increase in volume is required to detect the feasibility of an uptrend. However, traders should be patient until Ethereum price rises above the neckline resistance before activating buy orders. Ethereum is looking at $1,496, an 11.77 percent move from the $1,350 breakout point. In the chart below shared by the analyst, the 50-day SMA (Simple Moving Average) is shown in red. The 100-day SMA in blue also draws attention on the chart. These two averages support Ethereum price at $1,313 and $1,320, respectively.
The MACD (Moving Average Convergence/Divergence) indicator above the average line reveals an increasing bullish effect on Ethereum price. However, there needs to be strong demand behind ETH for a successful attack at $1,350 in the supply area. As long as the MACD maintains a positive divergence from the moving average, the path of least resistance will remain up.
Ethereum whales hit the brakes
Meanwhile, ten chain data from Glassnode draws attention to big investors. According to the data, it would be a critical development for investors holding 1,000 or more tokens to stop selling. Should these investors double down on their efforts to fill their bags, a positive picture could soon be observed for Ethereum price. The chart below shows 6,313 addresses in this group that had over 1,000 ETH as of September 15.
If the blue line on the chart above goes up, Ethereum price could breathe. Then it can chart a recovery path. Still, it remains critical that whales escape skepticism. The whales’ lack of skepticism could push ETH to $1,496 or even $2,000, according to the analyst. “In other words, the previously dominant selling frenzy must stop for ETH price to climb the ladder,” the analyst says. cryptocoin.com As we have also reported, ETH has experienced a 3 percent decrease in the last 24 hours.
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