Since last weekend, Ether has lost 10% of its value. However, a bullish impulse has occurred today. Could Ethereum experience a weekend in the green? Discover our analysis.
A Potential Ether Rise Towards $1250
Indeed, we can envisage a potential rise of 10% on ETH this week. This will eventually take its price above $1250. In such a scenario, this upward movement will erase all the losses in value since the weekend. Several parameters play, in fact, in favor of this scenario which will potentially lead the Ethereum towards a green weekend.
First, we can see the break of a downtrend line, represented by an oblique line on the chart. This line has acted as resistance for the price since Sunday. Today’s London session saw Ether clear this hurdle. Then there is the presence of a divergence of the RSI. This oscillator has indeed created higher and higher troughs. Which diverges with the price, which creates higher and higher dips. On top of that, the bullish pressure allowed the price to break through the resistance at $1109. Not to mention the fact that the price of an asset always tends to create the low of the week on Tuesday. All this thus leads us to the conclusion that Ethereum will close this week with a green candle.
A buying opportunity?
Yes, this rise could present a buying opportunity for crypto traders in the short term. Indeed, it is all the same a potential bullish move » by 10%. The area around $1109 seems to be the ideal level to place a buy order. This is quite a critical support for scalpers. After a bounce off this level, we could see Ether rising towards $1250. Taking profits around this area would be a good idea.
If the price of ether however breaks the support of $1074, it will invalidate this bullish thesis. In this case, we could envisage a descent of this crypto towards $1000, and even below.
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