Ethereum (ETH) continues its uptrend, holding above $2,600, rising 1.3% in 24 hours.
Despite this, the analysis of different time frames shows converging signals, which calls into question the future trend of the asset.
What to expect from Ethereum now?
The current upward movement was intensified earlier this week when the 9-day exponential moving average (EMA) (blue) crossed above the 21-day EMA (orange). The last time this occurred on September 20, the price of ETH rose by more than 10%.
There is a chance that something similar could happen now, as the asset is now targeting a high of $2,720. The Relative Strength Index (RSI) supports this projection, as the indicator is above 50 but has not yet crossed the 70 threshold. This shows that buyers are in control of the trend, but that the price can continue to rise without entering an overbought state.
Ethereum (ETH) Chart on TradingView
On the other hand, the 4-hour chart shows that a correction may occur soon. This is because the RSI on this timeframe has formed a bearish divergence. A bearish divergence on the RSI occurs when the price of an asset reaches new highs, but the indicator does not follow this movement, forming lower highs.
This signal usually precedes corrections or trend reversals. Therefore, it is necessary to perform a Fibonacci retracement on the last upward movement to predict possible bottoms of an eventual correction.
Ethereum (ETH) chart on TradingView
It is worth noting that the price has already tested the 0.382 retracement level. Therefore, if ETH does not overcome the current top, it is possible that it will fall towards the US$2,511 – US$2,469 zone, where the retracement levels of 0.5 and 0.618 are, respectively. If it falls below this level, the price could test the $2,335 bottom.
The article Ethereum (ETH) Forecast: How Can the Price Behave Today? was first seen on BeInCrypto Brazil.
