Opening this month short, ETH found solid ground after establishing support above $2.3k. This restored buying pressure as the price gradually rose with a double-bottom formation on the short-term scale.
Ethereum has continued to subject the market to a sideway move since it rejected the $2,100 level in August. It attempted to resume the dip in the following month but eventually established support above it.
The price bounced back and remained strong until it reached $2,728 in late September. A rejection occurred, and the buying stopped.
Things quickly fell apart after losing grip above the $2,700 level, but it found a new solid ground above $2,300 earlier this month and began to gain momentum slowly. Following today’s surge, it is now trading well above $2,500 after slightly crossing a minor resistance level.
Last month’s high is considered a major resistance level for a break-up. A successful breakthrough this high should bring a significant recovery in the market. From the look of things, volatility currently appears low.
If by any chance the price drops with a crack below the recent monthly low, ETH may resume bearish actions. But looking at the current setup in the form of a double-bottom pattern, the price is much more likely to rise in the next few days.
ETH’s Key Level To Watch
Source: Tradingview
Now that the price is trading well above $2,500, the potential key level to watch for an increase is $2,600 before flipping through last month’s high to the $2,810 resistance. $3,080 is the next key level for a break-up.
Towards the downside, $2,310 is an important support level to watch for a bearish move. Losing it could bring us back to August’s $2,111 low. Below it lies $2,000.
Key Resistance Levels: $2,600, $2,810, $3,080
Key Support Levels: $2,310, $2,111, $2,000
Spot Price: $2,531
Trend: Bullish
Volatility: High
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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