empty
 
 
You are about to leave
www.instaforex.eu >
a website operated by
INSTANT TRADING EU LTD
Open Account

25.08.202212:33 Forex Analysis & Reviews: Ethereum holds above $1500: altcoin correction completed?

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Ethereum is on the eve of a key event in its history, but even this did not keep the altcoin from falling. The cryptocurrency fell along with the entire market and tested the support level at around $1500. ETH managed to stop the fall and realize a local bullish momentum, gaining 4.5% over the past day. However, the asset has lost 7% of capitalization over the past seven days. As of August 25, Ethereum reached $1700, but should this be regarded as the end of the correction?

Exchange Rates 25.08.2022 analysis

On the daily chart, we see the full viability of the altcoin's local bullish momentum. Ethereum formed four uncertain candles in a row, indicating a decrease in overall trading activity and an advantage for buyers. The altcoin has reached a key support zone, which is on par with the final part of the bullish cup and handle pattern. Keeping the bullish pattern intact indicates that strong buying sentiment continues, suggesting a continued rise in the price of ETH.

Exchange Rates 25.08.2022 analysis

Technically, Ethereum also looks poised for a renewed upward trend. The main metrics of the asset indicate the activation of buyers and the presence of bullish momentum. The Relative Strength Index fell below 40 but then reversed upwards and crossed the 50 mark. The movement of the RSI directly indicates growing buying volumes and the presence of bullish momentum. The Stochastic Oscillator also confirms the price reversal and forms a bullish crossover near the oversold zone. The MACD also reverses and does not enter the red zone, which is an important bullish signal.

Exchange Rates 25.08.2022 analysis

Ethereum technical indicators indicate the final price reversal and the completion of the corrective movement. The main on-chain metrics also show an upward movement, which indicate a fundamental confirmation of the price rebound. The number of unique addresses on the ETH network has been showing strong growth since mid-August, suggesting an influx of new users and investments. This fact is confirmed by the growth in transaction volumes in the Ethereum network, which indicates a growing interest in the altcoin network. In other words, after a local correction, which was of a healing nature, Ethereum again attracts investors due to the fundamental factor for growth.

Exchange Rates 25.08.2022 analysis

In addition, there is an active accumulation of ETH coins by large buyers and miners. This creates a shortage of ether coins, which is especially valuable after inflation peaks in early August due to low fees on the ETH network. Active accumulation by long-term investors and a local decline in the overall trading activity in the Ethereum network had a positive impact on the cryptocurrency. According to the New supply on-chain indicator, the number of new coins is decreasing, creating an additional shortage of ETH in the open supply.

Exchange Rates 25.08.2022 analysis

However, despite all the positives, it is important to consider the correlation between ETH and BTC. In the coming days, there will be a Jerome Powell symposium, and statistics on unemployment and US GDP growth will also be published. This data can significantly affect Bitcoin, which, in turn, will pull Ethereum along with it. Therefore, if the medium-term prospects of ETH are not in doubt, then everything will depend on Bitcoin regarding the short-term situation.

Artem Petrenko
Analytical expert of InstaForex
© 2007-2024

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.

Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade



You are now leaving www.instaforex.eu, a website operated by INSTANT TRADING EU LTD
Can't speak right now?
Ask your question in the chat.

Turn "Do Not Track" off