The second-largest cryptocurrency in the ranks of market cap, Ethereum (ETH) is on a bullish run. The upward movement started on Oct. 9th when prices rose from $350 to $359 and later $368 the same day. Before the bullish run, prices were showing little or no action. At that time, the coin exchanged hands between $335 and $352.
Since the start of Q3 2020, Ethereum has seen little spotlight. The first two days of October saw prices drop from $368 to $336. After that drop, prices started rising till it got to $346. From October 3, prices gained at a steady pace until it reached $352 in the early hours of October 6. After the rise, prices dropped to $336 and later gently rose to $342 for a short moment before it fell back to $335 last Thursday.
The month’s major highlight happened on Monday when prices rose from $366 to $392. The rise happened simultaneously as Bitcoin’s price began to surge from $11,249 until it got to $11,696.
As usual, whenever Bitcoin starts to rise, other cryptocurrencies follow suit. ETH was one of the first beneficiaries of the upward movement in Bitcoin’s price. Different indicators also pointed out some reasons for the rise.
Relative Strength Index (RSI)
The Relative Strength Index (RSI) is key to studying traders’ behavior. On Monday, October 12, traders dumped a lot of Ether. The dump resulted in the coin almost getting oversold. Shortly after the dump, traders rallied the market back up. The rally sent the market to oversold, which contributed to the increase in price.
Before the time of writing, RSI was moving between 56 and 46. It shortly dropped to 47 and rose to 58 NE. At the time of writing, RSI looks to be dropping slightly; if the drop continues, it will affect the price of Ethereum.
- Key Resistance Levels: $388, $394, $400
- Key Support Levels: $384, $378, $376, $370
Bulls are key to breaking all resistance levels. At press time, Ethereum is trading at $382. If enough bulls are present, prices may flip $388 to a support level. In addition to flipping $388 to support, the $400 resistance level may also flip.
If the current RSI drops further, all the support levels are threatened. But traders can look forward to the $370 support level putting up a hard fight.