Even given the launch of the Spot Ethereum ETFs, there has been a lot of negativity around the number 2 cryptocurrency by market capitalisation. Will this current rally continue and prove the doubters wrong?
$ETH needs to overcome resistance
Source: TradingView
Looking at the short term 4-hourly chart, it can be observed that the $ETH price has broken the downward trend line, retested, and is meandering sideways. The price nearly got down to the 0.382 fibonacci, so if this bounce continues, it could become bullish.
That said, there is resistance overhead at $2,700, and $2,800, and this will either coincide with the 4-hour stochastic RSI arriving at the top of its trajectory, or the price could have broken through and flipped these levels into support by this time.
Upside momentum is coming for $ETH
Source: TradingView
Zooming right out into the weekly time frame, it can be noted just how strong these resistances can be to aid the bears. However, at the same time, the recent support level at $2,500, and the support at $2,100 look to be just as strong in favour of the bulls.
It can be seen at the bottom of the chart that the stochastic RSI is almost at the bottom. Once these indicator lines get to that bottom and then cross back up, expect some strong upside momentum to come in underneath the $ETH price.
$ETH gains a weekly close victory against $SOL
Source: TradingView
In relation to its ongoing battle with $SOL, which has been trying to break out of its $SOL/$ETH pair range, the weekly close was very much in $ETH’s favour, given that the price closed back inside the range, and also left a large wick to the upside.
Currently, $SOL has moved back above the range high, but with a cross down showing on the stochastic RSI, it may be that $ETH is favourite to gain dominance over $SOL – for a while at least. That said, there is a whole week of price action to come before this indicator confirms on Sunday evening.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://cryptodaily.co.uk/2024/08/ethereum-eth-rally-is-taking-shape