Ethereum had a very interesting run during the previous 30-day session. The asset saw notable price increases during this period as it tested and flipped the $2,000 resistance. This is the first time in more than 60 days that the coin is hitting this milestone.
Many may conclude that one of the main reasons the altcoin hit this feat was because of the hype around the merger. Nonetheless, there were other events that took place during the period under consideration.
Aside from the peak, it also dipped as low as $1,422 but soon recovered. It was about to close the gap the price decrease resulted in, however, it failed to accomplish this aim and closed August with losses of more than 7%.
On the part of fundamentals, there were some positive stories that made rounds. One such is Polygon announcing its support for the ethereum merge. The platform claims the event is good news amid community fears.
Another story is that of Chicago Mercantile Exchange (CME), rolling out ether options ahead of the merger. All this news was no doubt leading up to a massive one that would positively affect prices.
Following the way the previous month ended, traders will look forward to better price performance in the new one. Will ether see the needed push to the top? Let’s consider some factors
Based on previous records we may conclude that the ninth month is not one of the best performing. The image below further expresses the previous statement as we observe more statistics.
One notable thing about this figure is the consistent red color that paints the section dedicated to September. Since its introduction to the market, seven years have passed. Of all these periods, ETH lost a significant fraction of its value in five (with the inclusion of 2021).
It came off two Septembers with notable gains. However, the highest increase it saw during the timeframe under consideration is 14%. At the same time, the most significant loss it incurred is 45%. The losses no doubt outweigh the gains.
On average, the coin loses more than 16% (the largest of all the months). It is hard to conclude that all will be rosy for the largest altcoin. However, considering the upcoming event, it is hard to come up with a definite conclusion. Let’s turn to the charts
From the daily charts, we observed that the Moving Average Convergence Divergence is looking positive. The 12-day EMA is close to intercepting the 26-day EMA which indicates a bullish convergence and soon-to-follow divergence.
This signals the start of an uptrend. Based on fundamentals, we may conclude that the price increase may exceed the first two weeks of the month. In reaction to this move, we noticed ETH is about to test the pivot point at $1,669. We also observed that the Relative Strength index is picking up momentum as it is currently above 48.
Vital Support: $1,500, $1,400, $1,000
Vital Resistance: $1,700, $2,000
Bearing in mind the uncertainty in price movement, one of the levels that may be tested is the $1,500 support. Although the mark flipped after notable pressure, we’ve seen price trends close to it.
One of the toughest barriers that the bulls must defend is the $1,400. We also observed several unfruitful attempts at the level. However, the last time it flipped, the downtrend did not halt until a retest of the $1k support.
Based on recent performance, we may conclude that ether may face severe losses that may see it lose the $1k barrier. Nonetheless, with the prospect of an uptrend taking place, ETH may retest the $1,700.
The largest alt tested this mark twice in the last fourteen days but failed to flip it. It will take a larger amount of bullish pressure to break this resistance. Nonetheless, as per recent price movements, we observed that once the said mark breaks, a retest of $2k is soon to follow.
Only flipping the $2k resistance once in the last three months, it qualifies as the toughest on the list. It remains to be seen how high the coin will surge.
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