Market Analysis

ETHEREUM PRICE ANALYSIS & PREDICTION (October 7th) – ETH May Retest $1,900 If This Pattern Repeats, Down 3% Weekly

Ethereum’s recovery appeared to be slowing down after testing a key resistance area earlier this week. It is currently in the red following a steady 8% loss this week. The buyers are trying to regroup.

Last month, Ethereum recovered from a lower boundary of a channel and broke out of a two-month resistance line to mark a one-month high at exactly $1,751. The high level was rejected and the price rolled back. 

It entered this month on a negative note and continued to show signs of weakness by the day. Although the setup looks like a retest pattern of the recent breakup. It is looking for a solid support level to produce a bounce.

Yesterday, Ethereum reacted to the $1,606 level and increased briefly to test $1,662. It retraced from there and lost 1.1% under 24 hours as sellers mounted pressure. A drop below the $1,500 level could trigger a huge sell-off in the coming weeks.

However, if ETH repeats June’s bullish pattern, we can expect a lower high movement to the upper boundary of the channel before resuming its five-month bearish impulse.

The daily volume indicator has continued to fade by the day, indicating that sellers are still present. A continuous money outflow could trap the price below $2,000 until it finds a break out of this channel. All in all, Ethereum remains bearish from a short-term perspective.            

ETH’s Key Level To Watch

Source: TradingView

If the price drops below $1,600, the next area of interest for the bears would be $1,560 and $1,500. The lower levels to consider as support are $1,461 and $1,368, tapped as March’s low.

Let’s consider a strong bounce above the immediate $1,670 resistance level, the next buying target for Ethereum would be $1,803 and $1,900, which is located at the channel’s upper boundary.

Key Resistance Levels: $1,670, $1,746, $1,803

Key Support Levels: $1,560, $1,461, $1,368

  • Spot Price: $1,634
  • Trend: Bearish
  • Volatility: Low

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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Image Source: sdecoret/123RF // Image Effects by Colorcinch

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