After a series of bad news and sideways markets, the Bitcoin and Ethereum prices have remained muted.
Ethereum especially is in a critical support zone failing which it could slide another 2% and reach near the levels of $1,560. However, if the markets are favorable, the prices could turn towards a brief rally.
In this article, we will use technical analysis to examine both bullish and bearish scenarios for the top altcoin and explore what would be the ideal action for traders and investors.
The Ethereum prices have been very sideways for the last 4-5 weeks from mid-August to till date, moving in between $1,550 and $1,725. Throughout this journey, volatility was very low which negated any price movement either upward or downward.
At the time of writing, Ethereum prices have taken support in a very critical zone. On 27 September, it managed to cross the hurdle of $1,625 but failed to hold on to the price. Subsequently, the prices fell below $1,595, after which there has been a mild recovery.
There are expectations for a rise in Ethereum prices only if it crosses $1,800 which is a very tough resistance for now.
However, the fate of this recovery depends on US interest rates which might be slated to rise again after a brief pause last week. Rising inflation makes it mandatory for the US FED to raise interest rates to keep the prices in check.
Another cause of concern is the fall in crypto market volatility. A market which has higher volatility has higher price fluctuations and therefore has better chances of recovery. But, currently, crypto markets are going through one of the lowest periods of volatility in several years.
Further, a piece of negative news for Ethereum comes as Maker DAO considers moving out of the Ethereum blockchain and into a Solana-based ecosystem.
Currently, since the prices are sideways, we have to account for two possible scenarios, the bullish and the bearish.
If Ethereum prices continue their sideways journey, it could prompt sellers to short Ethereum for small gains which would plunge the prices below $1545, solid support below which prices could slide to 1435, another 6%.
If prices do slide, then Ethereum would witness a fall of nearly 10% from current levels of $1600.
This bearish scenario is supported by options data from Coinglass. The data shows that the highest Put Options, which indicate bullishness, are near $1,500. This means that prices near $1,600 are unstable and could fall to $1,500 soon.
Comparing this will call options, which indicate bearishness, the price zone of $1700 has a much higher concentration of call options. This means prices are not expected to move beyond $1700 anytime soon.
A bullish scenario would need Ethereum prices to move beyond $1,630 which it failed to do so on 27 Sep 2023. However, if such a move takes place, it could provide a small relief. However, prices would only be considered to be in a rally if they decisively cross $1760 on daily charts.
Only positive news could help the prices move beyond these two levels of $1,630 and then $1,760. However, the scenario seems opposite to expectations as the SEC considers postponing any decision on Bitcoin or Ethereum ETFs.
Ethereum prices currently seem to be stuck at current prices with low volatility. Any fall below these levels could take prices towards $1,545 and then towards $1,430, causing a 10% fall in overall prices from current levels. Things are much harder to imagine on the bullish side as prices need to decisively cross $1630 and then $1760 for a good move.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.