Ethereum Price Analysis: ETH Surges 8% Daily to Paint Fresh August Highs

2021-09-03 23:52:23 Primitive Reading

ETH/USD – Ether Finally Breaks August Resistance

Key Support Levels: $3350, $3200, $3000.
Key Resistance Levels: $3540, $3600, $3700.

Ethereum has been trapped inside a consolidation period since it established resistance at $3350 during mid-August. The cryptocurrency failed to overcome the resistance provided by a bearish .618 Fib Retracement and ended up forming a symmetrical triangle from there.

ETH had been trading inside this triangle pattern for the past fortnight as it dipped as low as $3000. It finally managed to break the consolidation today as it surged above the $3350 August resistance and passed $3400.

ETH/USD Daily Chart. Source: TradingView.

ETH-USD Short Term Price Prediction

Looking ahead, the first resistance now lies at $3540 (1.618 Fib Extension). This is followed by $3600, $3700 (1.414 Fib Extension – blue), and $3790 (bearish .786 Fib).

On the other side, the first support lies at $3350. This is followed by $3200 (20-day MA), $3000 (.236 Fib Retracement), $2890, and $2740 (50-day MA).

The RSI rebounded from the midline last week and is now heading higher again as the momentum starts to pick up.

ETH/BTC – ETH Breaks Descending Price Channel

Key Support Levels: 0.07 BTC, 0.0691 BTC, 0.068 BTC.
Key Resistance Levels: 0.072 BTC, 0.0733 BTC, 0.0754 BTC.

ETH is also performing well against BTC as it looks to head back toward the August highs of 0.0733 BTC. Since mid-August, ETH failed to break beyond 0.07 BTC and established a descending price channel.

The price channel saw ETH falling as low as 0.0651 BTC, where it found support at the 100-day MA and a .5 Fib. Yesterday, ETH finally broke above the falling price channel, ending the short-term downtrend. It continued further today to break 0.07 BTC and approached the 0.072 BTC (bearish .618 Fib) resistance.

ETH/BTC Daily Chart. Source: TradingView.

ETH-BTC Short Term Price Prediction

Moving forward, the first resistance lies at 0.072 BTC (bearish .618 Fib). This is followed by 0.0733 BTC, 0.0754 BTC (1.272 Fib Extension), 0.0765 BTC (bearish .786 Fib), and 0.08 BTC.

On the other side, the first support now lies at 0.07 BTC. This is followed by 0.0691 BTC (July highs), 0.068 BTC (20-day MA), and 0.066 BTC.

Likewise, the RSI rebounded from the midline today, indicating the buyers remain in control of the market momentum and the bullish momentum is increasing again.

Disclaimer: This specification is preliminary and is subject to change at any time without notice. Amazon Finance assumes no responsibility for any errors contained herein.