Will ETH reach a new all-time high (ATH)?

Ethereum

(ETH) peaked at $4,027 on September 3, just below the current all-time record of $4,372. Sponsored

Although the coin

is

showing signs of weakness, it is still trading above the key support area of $3350.

Long-term Movement

The weekly chart shows that ETH has potentially formed

a

double top formation. A double top

is considered a bearish formation. Sponsored Sponsored

Moreover, it has been combined with bearish divergence on both RSI and MACD. The bearish divergence

on the MACD signal line is of particular concern, as it is often the catalyst for bearish trend reversals.

The nearest support area is at the $1950 level, formed by the re-test of the July lows.

Will ETH reach a new all-time high (ATH)?Will ETH reach a new all-time high (ATH)? source: TradingView

New all-time high?

The daily chart shows that ETH struggled to break above the $3350 resistance area between August 9 and August 29. This area is the 0.618 fibonacci retracement resistance level and a horizontal resistance area.

While the RSI initially generated a bearish divergence (blue), its trendline was broken on August 31 when ETH managed to break out above this area. On September 4, it peaked at $4,027, slightly below its highest ever price of $4,372.

Since then, the token’s price has been falling, and the rate of decline accelerated on September 7. Despite the decline, ETH managed to stay above the $3,350 area, which is now expected to act as support. So far, ETH has bounced off this area, forming a long lower wick and also confirming the supertrend line (green icon).

Will ETH reach a new all-time high (ATH)?Will ETH reach a new all-time high (ATH)? source: TradingView

Counting

waves ETH

Cryptocurrencytrader @Thetradinghubb charted ETH, stating that the token

is in wave five of a bullish impulse that will end just above $4,000. Will ETH reach a new all-time high (ATH)?Will ETH reach a new all-time high (ATH)? 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 move is between $4070 and $4180. This target is located at the 1.61 outer fibonacci retracement level (black) and at the 0.618 level of the 1-3 wave length (orange).

Will ETH reach a new all-time high (ATH)?Will ETH reach a new all-time high (ATH)? source: TradingView

A closer look at this move shows that the bullish impulse is probably over

.

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

Therefore, it is likely that ETH

will correct in the near future.

Explanation

All information contained on our website is published in good faith and for general information purposes only. Any action taken by the reader in relation to the information on our website is solely at the reader’s own risk.