Ethereum (ETH) price continues to trade in “red” in a channel parallel to an ascending channel. Where is the ETH price positioning itself as the crypto markets continue to decline? Request Ethereum (ETH) analysis on October 27, 2021.
If Ethereum (ETH) price fails to hold at a key level, the price of ETH may fall towards the lower end of the current chart pattern, indicating a 20% risk of a drop. The key support in ETH price is around $3,900 as it is currently at the lower border of the ascending channel. Ethereum price, on the other hand, dropped below $4,000 after the corrections that began on Wednesday morning.
According to CoinMarketCap data, ETH/USD The pair dropped as much as 10% to an intraday low of $3,928 on Wednesday, October 27 from around $4,392 on October 26, but showed that an ascending channel remains within its borders.
The current move is testing the $4,000 level multiple times in ETH price. This move is thought to have occurred as a result of increased liquidity and increased greed and leveraged transactions in the market.
The largest altcoin by market capitalization Ethereum (ETH)At the time of writing, it was trading at $3,999, down 4.47% in the last 24 hours on most crypto exchanges. This price shows a decrease of 4% in the last 7 days.
Ethereum Price Is In An Ascending Channel
Ethereum price is trading within the confines of an ascending parallel channel on the daily chart and could prevent further losses if it avoids breaking out of the pattern.
The governing chart formation/model, ETH/USD It identifies a bullish trend above the coin, indicating the possibility of the smart contract token going higher and what is happening right now could be a healthy correction.
However, it is worth noting that ETH price is also the last “defensive line” at the psychological support level of $3,900, supported by the lower border of the ascending channel.
If there is no close above this support level, the ETH price may experience a major shock, which could bring huge losses. It is expected to test the $3,800 support level first, followed by the 50-day Simple Moving Average (SMA) at $3,490, and the 100-day SMA at $3,238, respectively. The end of this channel is seen at $3,200.
ETH/USD Daily Chart
If ETH continues to stay inside the ascending channel and closes above the psychological $4,000 level, Ethereum bulls can be expected to move up to $4,260, which is at the middle border of the ruling chart pattern, and face resistance there. In addition to this level, the psychological resistance level of $4,300 may also arise.
ETH price may face even stronger resistance near the October 26 high of $4,392 and the Oct 21 high of $4,410, so bulls need to be patient. It should be noted that the border of the ascending channel is also at $4,632, which is also very strong.
Until it hits those levels, the MACD and RSI Indicators suggest that ETH correction may continue in the near term.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.