ETH technical analysis for October 12-18: the coin could resume its uptrend this week
Can the bulls push Ether to resume its upward trend?
Data from glassnode shows that Ether miners raked in $168.7m in revenue in September, while Bitcoin miners took home $26m during that period. This is the longest stretch when Ethereum’s fees have been higher than Bitcoin, according to data from Messari.
Average Ethereum fees skyrocketed to above $14, with the boom in the decentralised finance space in September, but has now dropped to about $2.
During this period, about $1.5bn worth of Bitcoin was converted into Ethereum-based tokens such as wBTC or renBTC. This shows that Bitcoin owners are keen to earn an attractive yield on their assets.
In the past few days, several DeFi tokens have succumbed to intense selling pressure. However, can Ether buck the trend and resume its up-move? Let’s do the Ether price analysis of the weekly chart and the daily chart to determine the path of least resistance.
ETH price technical analysis: weekly chart
Ether’s price has been stuck in a $312.95–$394.39 range for the past five weeks. The biggest altcoin recovered from the 20-week EMA and closed at $374.25, with a 6.17 per cent gain for the week.
The upsloping moving averages and the RSI in the positive territory suggest that the bulls have an upper hand. The buyers will attempt to propel the price above the overhead resistance at $312.95 in the next few days.
If they succeed, the ETH/USD pair could retest the highs at $489.02. A breakout of this level could resume the uptrend with the next likely stop at $550.
Contrary to this assumption, if the price again turns down from the overhead resistance, the pair may extend its stay inside the range for a few more days.
A breakdown and close (UTC time) below $306.10 will tilt the advantage in favour of the bears.
While the weekly chart shows consolidation, does the daily chart project a possible trending move? Let’s do the Ether price analysis of the daily chart to find out.
ETH price technical analysis: daily chart
Ether’s price has walked up to the resistance line of the symmetrical triangle. If the bulls can propel the price above the triangle, the uptrend is likely to resume. The pattern target of this setup is $476.56.
The RSI has been trading in the positive territory for the past few days and the 20-day EMA has started to turn up gradually. This suggests that the bulls are at an advantage.
Contrary to this assumption, if the price turns down from the current levels or if the bulls fail to sustain the breakout, it will suggest that bears are selling on minor rallies.
The pair will turn negative if the bears sink and sustain the price below the triangle. Such a move may drag the pair to $224.
ETH price technical analysis: how can traders be positioned this week
It is difficult to predict the direction of the breakout from a triangle with certainty. Therefore, it is better to wait for the price to break out and close (UTC time) above the triangle before turning positive, as suggested in the previous analysis.
As the indicators are showing a positive bias, traders may resist the urge to short at the resistance line of the triangle.
FURTHER READING: How to trade Ethereum: the ultimate guide
FURTHER READING: What is Ether? Your simple guide to the cryptocurrency