Will ETH Reach A New All-Time High?

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In Brief
  • ETH is approaching a new all-time high price.

  • It has created a double top pattern.

  • ETH has potentially completed a bullish impulse.

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Ethereum (ETH) reached a high of $4,027 on Sept. 3, just below the current all-time high of $4,372.

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While it is showing signs of weakness, it is still trading above the crucial $3,350 support area.

Long-term movement

The weekly chart shows that ETH has potentially created a double top pattern. The double top is considered a bearish pattern. 

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Furthermore, it has been combined with bearish divergences in both the RSI and MACD. The bearish divergence in the MACD signal line is especially worrisome since it is often the catalyst for bearish trend reversals. 

The closest support area is at $1,950, created by the re-test of the July lows.

Chart By TradingView

New all-time high?

The daily chart shows that ETH struggled to move above the $3,350 resistance area in the period from Aug. 9 to Aug. 29. The area is the 0.618 Fib retracement resistance level and a horizontal resistance area. 

While the RSI initially generated bearish divergence (blue), its trendline broke on Aug. 31, when ETH managed to break out above the area. On Sept. 4, it reached a high of $4,027, slightly below the all-time high price of $4,372. 

While the token has been decreasing since, with the rate of decrease accelerating on Sept. 7. Despite the drop, ETH managed to hold on above the $3,350 area, which is now expected to act as support. So far, ETH has bounced at the area, creating a long lower wick while also validating the supertrend line (green icon).

 
Chart By TradingView

ETH Wave count

Cryptocurrency trader @Thetradinghubb outlined an ETH chart, stating that the token is in wave five of a bullish impulse, which will complete just above $4,000.

Source: Twitter

The wave count suggests that ETH is in wave five of a bullish impulse that began on June 22. The most likely target for the top of the upward movement is between $4,070 and $4,180. The target is found using the 1.61 external Fib retracement level (black) and the 0.618 length of waves 1-3 (orange).

Chart By TradingView

A closer look at the movement shows that its likely that the bullish impulse is complete. 

There is a completed five wave sub-wave count (red) in the fifth and final wave. Furthermore, the ongoing drop looks impulsive. 

Therefore, it is likely that ETH will correct in the near future.

Chart By TradingView

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

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