Ethereum Trades Below $2,500 After Rebound From $1,500 Low, With Rally and Pullback Risks Both in Play
Summary
- Ethereum has entered a phase where both further gains and a correction are possible as it trades below $2,500 after a sharp recovery from its $1,500 low.
- CryptoPotato said the decline in Ether holdings on exchanges and Ethereum's ability to hold the $2,100 support level could allow the broader uptrend to continue.
- CryptoPotato said a break above $2,500 could strengthen the rally, while a drop below $2,400 could lead to a deeper correction, adding that sideways trading or a pullback remains possible as the RSI has moved back below the overbought threshold.
Forecast Trend Report by Period
Ethereum has entered a phase where both further gains and a pullback remain possible after rebounding sharply from a $1,500 low and continuing to trade below $2,500.
CryptoPotato reported on September 8 that Ethereum has repeatedly attempted to break above the top of its range near $2,500, but selling pressure has blocked those moves. At the same time, Ether holdings on exchanges have continued to decline, reducing the amount of supply potentially available for sale.
On the daily chart, the broader uptrend could remain intact if Ethereum stays above the key support level of $2,100. Still, the relative strength index, or RSI, has slipped back below the overbought threshold, raising the possibility of sideways trading or a deeper correction before fresh buying emerges.
On the four-hour chart, repeated selling has appeared near $2,500, while buying interest has come in at the lower end of the range. CryptoPotato said a break above $2,500 would increase the odds of further gains, while a move below $2,400 could turn the current sideways pattern into a deeper correction.
JH Kim
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