Ethereum (ETH) began a slight recovery this Thursday (4), but there are still doubts about its future price trend.
With a 1.4% increase in the last 24 hours, ETH has regained the $2,300 support level. Will the world's largest altcoin by market capitalization continue to rise or will it soon resume the downward trend seen in recent days?
Ethereum starts recovery
Ethereum was not immune to the fears generated by the conflicts in the Middle East this week. In the period, the asset fell by more than 12%, losing a wedge pattern in the process.
However, the asset appears to have found strong support at $2,300. In this price zone, the cryptocurrency formed three consecutive hammer candles. It is worth noting that this candle pattern is known to anticipate trend reversals.
Although the reversal is yet to be confirmed, technical indicators are bullish. The Relative Strength Index (RSI) is rising, approaching the neutral zone of 50. If it breaks above this level, it would indicate that buyers have taken control of the market.
Additionally, ETH is in the process of forming a candle above the 9-period exponential moving average (EMA) â something that has not happened since Monday (30).
Ethereum (ETH) chart on TradingView
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Price forecast
However, the current jump cannot yet be classified as a trend reversal. Fibonacci retracement, a tool used to identify possible support and resistance levels along an asset's trajectory, shows that several levels need to be overcome for a reversal to occur.
As you can see in the 1-hour chart below, ETH needs to clear the 0.618 retracement level at $2,572 to confirm the reversal. Until that happens, the current bounce is just a correction of the last downward move.
Ethereum (ETH) chart on TradingView
However, technical indicators are bullish. The 9-period EMA is already above the 21-period EMA (orange). Furthermore, the RSI is above 50.
Therefore, ETH is likely to remain high for the rest of the day.
The article Ethereum (ETH) Forecast: How Can the Price Behave Today? was first seen on BeInCrypto Brazil.
