Ethereum price prediction: ETH should bounce back to $4,000 soon

ADVERTISEMENT

ETH bulls are expecting a further rise after bouncing back from the USD 2650 level.

The price of Ethereum has surged upwards in the last 24 hours, starting an uptrend from the USD 2,650 level, which was reached during the Evergrande-catalysed cryptocurrency selloff this week. Given the possibility of profit-taking, Ether could swing sideways in the region of US$3,000-3,300, with prices reaching US$4,000 after a further rise.

According to the blockchain data analytics platform Santiment, the 7-day moving average market-to-value ratio (MVRV) indicates that the price of ETH is currently below its “fair value”. The data shows that the majority of short-term contract holders are experiencing losses, a scenario that is likely to lead to increased buyer pressure, leading to another bounce in the Ethereum price.

ADVERTISEMENT

Short-term Ethereum price outlook
As can be seen from the hourly chart of the ETH/USD pair, as Ethereum bounces off the support at $2,650, the bulls are on the rise. The cryptocurrency’s rally included a surge above the fall line formed since the 19 September drop.

During the rally, ETH is well above the 50 SMA, and the bulls are likely to focus on forming a new support base at the horizontal resistance line at USD 3100.

The Super Trend indicator is signalling buying pressure on Ethereum, and the uptrend may continue if buyers break the 1,236 Fib level (USD 3,210).

A successful break of the 200 SMA (hourly chart) will confirm the buy signal and may allow ETH/USD to aim for further growth near the USD 3,500 supply wall. From there, buyers may seek to retest the USD 4000 level, and a new all-time high may be reached by the 2021 close.

Technical indicators that also confirm the above outlook are the parabolic SAR below the price level, the RSI positive divergence near the overbought territory and the MACD line above the signal line and aiming to strengthen in the bullish zone.

Based on the above technical outlook and the aforementioned channel data, traders are likely to aim for a move up to $4000 by early October. Sellers may want to retest the key support zone around $2,800-$2,720.

According to a technical analyst at Rekt Capital, a monthly close in the ETH $2,777 region would allow bulls to “enjoy a green October”.

 

ADVERTISEMENT