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Ethereum Price Could See a Short-term Correction Before the Upswing Resumes

Ethereum Price Could See a Short-term Correction Before the Upswing Resumes


The Ethereum fear and greed index signals high greed readings at level-73 even as GasNow, the popular Ethereum gas price quotation system suspends operation. The event was followed by the China-based mining pool [Sparkpool] earlier announcing the closure in response to regulatory requirements.

Etherscan at press time shows that the Ethereum 2.0 deposit contract maintains its lead as top deposit account in terms of Ether balance, an indication that the Sparkpool incidence does not deter the growth of the ETH ecosystem.

Another significant driver of the general crypto market is the recent Bitcoin ETF approval, as analysts speculate on an Ethereum ETF approval to follow. Meanwhile, the ETHBTC price chart from a daily time frame signals a regular bullish divergence, which means we should expect a rise in demand for ETH over BTC in the short to mid-term.

Read on as we uncover more insights from the ETHUSDT price chart.

Ethereum (ETH) Weekly Chart Analysis

Paired against USDT, the Ethereum ETH trades within an expanding triangle, formed by bearish and bullish divergence patterns on 10 May and 19 July ’21.

The ETHUSDT price soared by about 136% after following a hidden bullish divergence on 19 July. Values of the RSI continue to trade above level-25, therefore indicating an uptrend as a bear-trap signal confirms a higher trough on 20 September ’21 [$2652.00].

Ethereum (ETH) Daily Chart Analysis

The above daily chart annotations reveal a similar expanding channel chart structure, this time with a bearish divergence as the current signal.

We anticipate the current uptrend to retract as early bulls take out some profits. On the flip side, a surge in demand could nullify the bearish divergence altogether as the price shoots for new highs.

Ethereum (ETH) 4HR Chart Analysis

Viewing the ETHUSDT from the 4HR intraday time frame, we notice a third expanding channel with a bullish divergence signal at press time.

Short-term scalpers could take a quick long order trade following the current bullish divergence with support at $3795.00. 

Although the general outlook for the ETHUSDT remains bullish, traders should generally be mindful of a price breakdown below the bullish trend line support, which could confirm the bearish divergence signal on the daily time frame and a decision to short sell the ETHUSDT.

Ethereum (ETH) Intraday Levels

  • Spot rate: 3894.09
  • Mid–Term Trend [H4]: Strong Bullish
  • Volatility: High
  • Support: $3371.00, $3695.00, and $3795.00
  • Resistance:  $3966.00 and $4000.00

Disclaimer

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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