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Ethereum [ETH] Market Analysis: 20 October Roundup

Ethereum Market Analysis

In mid-September, when ETH reversed from its six-month trendline resistance, Ethereum [ETH] lost a third of its value. The altcoin’s bearish trajectory was set by the subsequent slide below the 20 EMA, 50 EMA, and 200 EMA.

Following a sharp downturn in the four-hour timeframe, recent price moves for Ethereum show a setup resembling a symmetrical triangle. A symmetrical triangle functions as a continuation pattern the majority of the time. Therefore, a drop below the triangle’s lower trendline could expose the cryptocurrency to a short-term collapse before a lift-off.

This fall might result in a retest of its first significant support level in the $1,240 support region. The buyers can then make an effort to hunt for a quick recovery. The 20/50 EMA bearish crossover further strengthened a minor selling advantage.

However, a swift break above the EMA boundaries and a subsequent breach above the triangle’s top trendline would render the bearish viewpoints obsolete. The potential goals in this scenario would be located close to the 200 EMA and the $1,387 zone.

After falling below the equilibrium, the Relative Strength Index (RSI) showed a modest bearish edge. However, the price movement and its lower troughs bullishly diverged. On the other hand, the Chaikin Money Flow (CMF) kept its sport above the zero line and displayed a bullish edge.

The rising bullish mood in the futures market has been reflected in the favorable swing in ETH’s financing rate on Binance during the past week. On FTX, however, its rate was just under the 0% level. The near-term sentiment may help the buyers invalidate the bearishness if it continues to advance on the path to becoming optimistic.

Lastly, traders and investors need to keep an eye on the movement of Bitcoin (BTC). The reason behind this is that ETH and the king currency had a 40% 30-day connection.

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