September 2, 2021 / Analytics

Ethereum Price Analysis: The Demand Has Reached A High Level

ethereum forecast

Ethereum (ETH) cryptocurrency market has entered a phase of exponential growth in asset value. Therefore, the upward movement will accelerate and the coin will rise to $ 4,300 by September 9th.

Key Points

  • ETH is hovering well above the 100 hour moving average ($ 3,374).
  • On the hourly chart, a bullish trend line has formed with support around $ 3,600.
  • The nearest barrier to resistance is at $ 3,800.

Ethereum rate began to be pumped again on August 31. ETH value rose by 22% in two days, and the bulls broke through the resistance at $ 3,800. However, the price of the asset did not gain a foothold above this barrier and on Thursday it corrected to $ 3,740 (Bitstamp data).

ETH has risen in price by almost 126% since July 22, while the coin rate has reached 78.6% Fib, taking into account the dump from $ 4,380 to $ 1,713. During the first wave of an uptrend, ETH/USD added 95% in price. Therefore, the value of the asset will renew its historical maximum during the second wave. Judging by the chart, the bullish trend will strengthen after breaking the $ 3,800 barrier, and Ethereum rate will rise to $ 4,300 within the next week.

eth chart

The downward movement will meet strong resistance at around $ 3,360, respectively, the asset rate is protected from serious losses. At the same time, the current correction is within the bounds of a bullish trend, so a reversal in the market is unlikely. The only concern is the small volume of trading, due to which the upward trend may slow down.

Ethereum Demand Hits High

At the end of July, the Fear & Greed Index dropped to 10, a horror zone. However, during the August pump, its value increased to 74, which corresponds to “greed”. The indicator value changes depending on the number of purchased coins, thus, its increase indicates an increase in demand for Ethereum.

On August 6, the Hash Ribbons indicator gave a bullish signal in the Bitcoin (BTC) market. Exactly the same pattern formed on the chart as on December 2, 2020. Last time, BTC rose by 250% after this signal, so traders expect the Bitcoin rate to rise to at least $ 130,000.

eth chart

If BTC value rises, then ETH rate will also fly up. From December 2, 2020 to May 12, 2021, Ethereum has risen in price by 675%. Drawing an analogy with Bitcoin, we can assume that the bull run on the ETH market will end in January 2022 at around $ 21,500. In this case, the timing of the end of to the moon mission will coincide with the completion of the bullish trend in 2018.

eth chart

Technical indicators:

  • 4 hours MACD is in the bullish trend zone.
  • 4 hours RSI is above 70 (in the negative area).
  • Major Support Level – $ 3,600.
  • Major Resistance Level – $ 3,800.
  • The nearest pivot points are $ 3,422 and $ 3,873.
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