Ether price analysis 25 Oct: Is a rally to $5,000 likely?

Ether could again try to break above the all-time high

A visualisation of a pile of ethereum coins                                 
Could ether try to break above the all-time high? Photo: Shutterstock
                                

The crypto markets were buzzing last week with the successful debut of the ProShares Bitcoin Strategy exchange-traded fund on 19 October, followed by the launch of the Valkyrie Bitcoin Strategy ETF on 22 October.

Next in line is the VanEck Bitcoin Strategy ETF, which is set to go live on 25 October.

Trey Griggs, the US chief executive of the crypto trading firm GSR, said the success of the Bitcoin futures ETFs could mean that an Ethereum ETF may soon get the green light.

He believes the launch of Ether futures on CME was a major step toward earning credibility as an asset class. “The heavy lifting has been done with the launch of the bitcoin-futures ETF”, said Griggs, adding that an Ethereum ETF “could be done this year”, according to The Business Insider

However, the classic adage of “buy the rumour, sell the news” was witnessed, with ether facing sharp rejection near May’s all-time high on 21 October. This suggests that several short-term traders may have booked profits after the launch of the Bitcoin ETF.

Does ether’s price analysis suggest a bounce from the current level and a break above the all-time high, or will the pair again reverse direction from the overhead resistance? Read the ETH price analysis to find out.

Ether price technical analysis: weekly chart

Ether price technical analysis: weekly chart
Ether price technical analysis: weekly chart – Credit: Currency.com

ETH’s price jumped 6.08% last week to finish at $4,082.29. The long wick on the week’s candlestick suggests that bears are aggressively defending the all-time high on 12 May at $4,381.71.

However, a positive sign is that bulls have not given up much ground. This suggests that buyers are accumulating on minor dips.

The moving averages are sloping up and the relative strength index (RSI) is just below the overbought territory, indicating that bulls are in command. 

A break and close above $4,381.71 could start the next leg of the uptrend which may reach the psychologically critical level of $5,000.

Contrary to this assumption, if the price once again turns down from the overhead resistance, the bears will attempt to pull the ETH/USD pair to the 20-week exponential moving average (EMA).

Ether price technical analysis: daily chart

Ether price technical analysis: daily chart
Ether price technical analysis: daily chart – Credit: Currency.com

ETH’s price turned down from the overhead resistance on 21 October as seen from the long wick on the day’s candlestick. However, the correction was shallow as the price turned up from $3,888.38 on 22 October.

A tight consolidation near the strong resistance indicates that traders are not hurrying to close their positions as they anticipate the up-move to continue.

The rising 20-day EMA and the RSI in the positive zone signal that the path of least resistance is to the upside. If buyers thrust the price above $4381.71, the bullish momentum could pick up and the pair may resume its up-move.

The critical level to watch on the downside is the 20-day EMA. A break and close below this support will suggest that traders are not buying the dips. That could intensify the selling and pull the pair down to the 50-day simple moving average.

Ether – buy or sell this week?

Ether’s price analysis shows that bears are defending the all-time high while bulls are buying on dips to the 20-day EMA. The indicators suggest that the bulls have the upper hand, signalling a possible resumption of the uptrend. This bullish view will invalidate in the short term if the price turns down and breaks below the 20-day EMA.

The views and opinions expressed in the article are those of the author and do not constitute trading advice. Trading and investing involve substantial risks and you should do your own research or contact your financial adviser before arriving at a decision. 

Ethereum to US Dollar
Daily change
4529.72
Low: 4478.65
High: 4614.65

Further reading

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