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Ethereum Hits $1,746 Double Top; Time to Sell?

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Arslan is an expert live webinar speaker and derivatives analyst, specializing in cryptocurrencies, Forex, commodities, and indices. He holds an MBA in Finance and an MPhil in Behavioral Finance from the University of Gujrat (UOG), Pakistan. With many years of experience in cryptocurrency and Forex trading, Arslan currently focuses on cryptocurrency price predictions and forecasts. Arslan has previously worked with several brokerage firms’ Forex and cryptocurrency trading teams, managing client exposure risk. Arslan has worked at CAPEX.com and NatureForex.com, among others.
By Arslan Ali Butt
author
Arslan is an expert live webinar speaker and derivatives analyst, specializing in cryptocurrencies, Forex, commodities, and indices. He holds an MBA in Finance and an MPhil in Behavioral Finance from the University of Gujrat (UOG), Pakistan. With many years of experience in cryptocurrency and Forex trading, Arslan currently focuses on cryptocurrency price predictions and forecasts. Arslan has previously worked with several brokerage firms’ Forex and cryptocurrency trading teams, managing client exposure risk. Arslan has worked at CAPEX.com and NatureForex.com, among others.
on October 02, 2023 | 2 min
Updated on Oct 03, 2023
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  • Ethereum sees a 2.95% rise, trading at $1,726.15 with a $207.55 billion market cap.
  • Technical indicators suggest overbought conditions, with a pivotal double top at $1,746.
  • Short-term trend: Sell below $1,745 or consider buying if price surpasses this level.

As of today, Ethereum (ETH/USD) is trading at a price of $1,726.15, marking a 2.95% increase in the last 24 hours. This movement in price comes with an impressive 24-hour trading volume of $5.86 billion. On the broader crypto market landscape, Ethereum retains its #2 position on the CoinMarketCap ranking, showcasing a robust market cap of approximately $207.55 billion. The cryptocurrency’s circulating supply stands at 120.24 million ETH, edging closer to its max supply limit.

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ETH/USD Price Chart
ETH/USD Price Chart – Source: Tradingview

Ethereum Price Prediction: Technical Outlook

The technical chart for Ethereum on a 4-hour timeframe provides crucial insights into its potential price trajectory. Currently, the pivot point for Ethereum is located at $1,684. On the upside, there are notable resistance levels to watch. The immediate resistance is pegged at $1,805.1, followed by subsequent barriers at $1,874.5 and $1,995.6. Conversely, the digital asset finds its immediate support at $1,610.6, with further cushions at $1,491.5 and $1,420.1.

 

Turning our attention to the technical indicators, the RSI (Relative Strength Index) registers a value of 72.77. This value, being above 70, hints at an overbought condition for Ethereum. The MACD (Moving Average Convergence Divergence) indicates a value of 3.5, with its signal line standing at 19.8. A closer look reveals that the MACD line is converging towards the signal line, which might be a precursor to a potential shift in momentum.

 

The 50-Day Exponential Moving Average (EMA) for Ethereum is currently positioned at $1,651.1. With the price trading above this level, it signifies a short-term bullish trend. However, chart patterns offer an interesting perspective. A clear bullish engulfing candlestick pattern is observed above the 50 EMA line at $1,680, suggesting a possible buying opportunity. But, complicating matters is the formation of a double top pattern around $1,746, which traditionally signals an end to an uptrend and potential price reversal.

 

Conclusion: Ethereum is at a crossroads. The cryptocurrency’s overall trend suggests that traders should consider selling below the $1,745 mark, but there’s also a case to be made for buying if the price climbs above this threshold. In the short term, we can expect Ethereum to possibly test the resistance levels mentioned above. As always, traders should keep an eye on the broader market sentiment and execute trades based on a comprehensive analysis.

Stay tuned for more updates!

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About Arslan Ali Butt
Arslan is an expert live webinar speaker and derivatives analyst, specializing in cryptocurrencies, Forex, commodities, and indices. He holds an MBA in Finance and an MPhil in Behavioral Finance from the University of Gujrat (UOG), Pakistan. With many years of experience in cryptocurrency and Forex trading, Arslan currently focuses on cryptocurrency price predictions and forecasts. Arslan has previously worked with several brokerage firms’ Forex and cryptocurrency trading teams, managing client exposure risk. Arslan has worked at CAPEX.com and NatureForex.com, among others.
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