After a rock-solid period, Ethereum (ETH) has had to suffer a lot of pain over the past two months. The largest altcoin has lost tens of percent of its value and is now well below its record high. Yet it’s not as bad as you might think. In fact, the stock may be in better shape than ever.
Why Ethereum’s decline is good news
In August, Ethereum investors were finally able to celebrate another record high — something they had been waiting almost four years for. The largest altcoin reached over $4,950 at its peak, after an impressive rise of 182 percent in less than four months.
While Bitcoin (BTC) managed to surprise in September with a gain of almost 6 percent, Ethereum lost almost the same percentage. And the following month, another 7 percent was deducted from the price.
Was $4,950 the peak of this bull market?
No one knows for sure, but technically Ethereum seems to be undergoing a healthy correction. The bulls have managed to defend a crucial price level.
That level is $3,800, which has been a strong resistance zone for years. During the previous bull market (2021), Ethereum repeatedly cut its teeth here, and in the years that followed the price continued to bounce back. Only this summer did the coin finally break through convincingly.
The recent decline simply brought the price back to that old level, which now acts as support. At times, Ethereum briefly traded below it, but the month ended up neatly around $3,850.
That is a positive signal: the former resistance now appears to function as a new support zone. In technical analysis, this is considered evidence that buyers have taken control. That leaves room for the next chapter of the bull market.
This is now the most important level
Of course, it offers no certainty that the ETH price will rise to new heights. And certainly not for the short term. Dutch analyst Ted will only be convinced if more than $4,000 is deposited for Ethereum again.
At the time of writing, investors are paying $3,887 for the second largest crypto. That is 0.75 percent more than 24 hours ago.
Source: https://newsbit.nl/ethereum-daalt-2-maanden-op-rij-maar-koers-ziet-er-beter-uit-dan-ooit/
