The price of Ethereum has fallen almost 5% after he reached a new highlight of $ 4,946 earlier today.
Summary
- Ethereum Price has cooled after reaching an all time on August 25.
- Historical data suggests that September it can be arary for ETH.
- Technicals portray a contrasting prospects while ETH is traded within an ascending channel on the daily graph.
According to data from crypto.news, the price of Ethereum (ETH) set more than 21% to reach a new high point of $ 4,946 on 25 August before setting up from the $ 4,713 press. For this price it remains 26% up since the beginning of August and 220% of its layer to date.
Despite the strong profits that the leading Altcoin posted per market capitalization in August, historical data suggests that it could probably be Bearish for the coming month.
A look at data from Coinglass shows that since 2016, every time Ethereum achieved profits in August, it was followed by a decrease in September. More specifically, ETH achieved profits of 92.86%, 25.3%and 35.6%in August 2017, 2020 and 2021, while the respective septembers registered decrease of 21.65%, 17.08%and 12.55%.
Such a scenario is further supported by the fact that ETH remains close to the high levels of all time. Cryptocurrencies usually tend to make some sale after reaching a new peak, while early investors start to make the profit.
In the meantime, Data from Coinglass shows that the sharp fall in Ethereum of his new high was activated by a wave of long liquidations, because survived positions were rinsed near the top. In the last 24 hours, the total liquidations for ETH $ 216 million, with almost $ 130 million from long positions.
From the moment of the press, dense liquidation zones remain clustered above $ 4,900. Any renewed attempt to break higher can generate a different liquidation cascade. If this happens, ETH can continue to slide to the range of $ 4,600 – $ 4,680.
Nevertheless, in contrast to earlier cycles, Ethereum could enter the next September under another macroom environment, a characterized by the presence of spot -ether ETFs and business treasury that kept Eth, both of which were absent in the last August.
The nine-spot Ether funds attracted $ 2.79 billion in inflow in August, after $ 5.43 billion in the previous month, which reflects a strong demand for Ether from institutional investors. In contrast to their Bitcoin opposite, this is opposed, who will flow this month of a total of $ 1.19 billion.
With the shift in market dynamics, Ether has emerged as one of the most viewed crypto assets this month, reinforced by the regulatory momentum and a wave of business accumulation.
On the Daily Chart, Ethereum has been exterminating since the end of June within an increasing parallel channel, characterized by higher highlights and higher lows within two upward trend lines. This structure usually indicates a continuation of the prevailing bullish trend, provided that the price is limited in the channel.
From the moment of the press, Ethereum was consolidating near the middle line of the canal, which suggests a period of balance between buying and sales pressure. In particular, token acts above the exponential advancing average of 20 days, a sign that the momentum remains for the bulls in the short term.
Moreover, the Supertrend indicator has turned green and placed under the price, with a new bullish confirmation.
In the meantime, the relative strength index has fallen to a lecture of 60, which indicates that Bullish Momentum persists, but without entering the overbough area. This suggests that Ethereum still has room to continue before he becomes exhaustion of the buyer.
If the Bullish Momentum continues, the next large upward target is at $ 5,200, which represents a profit of 10% of the current level and marks the upper limit of the channel. An outbreak above this level could accelerate further profit, especially if accompanied by a strong volume.
On the other hand, support is found immediately at $ 4,349, a level that matches the 78.6% Fibonacci racement of the most recent upward swing.
A break below this level would invalid the current pattern and cause a deeper correction in the direction of the lower limit of the channel.
Publication: This article does not represent investment advice. The content and materials on this page are only for educational purposes.
