- Ethereum has undergone a strong correction from the 2020 highs near $490.
- The leading cryptocurrency currently trades for $345, down 30% from the aforementioned highs.
- Many investors have pointed to this correction as the start of a longer-term bearish trend for ETH.
- This may not be the case: analysts say that Ethereum’s long-term outlook is still positive.
- They cite pivotal technical factors, including but not limited to a strong set of technical levels below ETH’s current price.
Ethereum Still in a Bullish Long-Term Position, Analyst Says
Analysts are still optimistic about Ethereum despite a strong drawdown from the local highs. One cryptocurrency trader recently shared the chart below, noting that while ETH has faced a correction, it remains above a series of exponential moving average supports.
“Personally with so much uncertainty in the market it is very possible we see a $300 region retest, that said honestly HTF structure is looking great, lots of EMA support below us… In 2018/2019 the 55 EMA was consistently resistance, price now trending well above!”
Chart of ETH's price action over the past few years with analysis by crypto trader Crypto Cactus (@TheCryptoCactus on Twitter). Chart from TradingView.com
This came shortly after Logan Han, a top trader on Binance, also shared an optimistic opinion about Ethereum. Both analysts shared extremely similar charts, as they both showed that the cryptocurrency has extremely notable technical supports below its current price.
Han also noted that ETH has formed a medium-term falling wedge, which is likely to break higher. A falling wedge is a textbook bullish pattern that often occurs in the middle of uptrends.
Chart of ETH's price action over the past few years with analysis by crypto trader and leading Binance analyst Logan Han (@loganhan_ on Twitter). Chart from TradingView.com
Positive Fundamental Trends
Ethereum has positive fundamental trends that may drive the coin higher over time despite any short-term technical weakness.
As reported by Bitcoinist previously, Glassnode data indicates that over the course of September, Ethereum miners collected $166 million in transaction fees. Over that same time frame, Bitcoin miners collected a relatively small $26 million in transaction fees.
Analysts see this as positive for the blockchain as it shows that it is easily dominant over other networks like Tron, EOS, or Solana.
Featured Image from Shutterstock Price tags: ethusd, ethbtc Charts from TradingView.com Ethereum's High Time Frame Structure Looks "Great" Due to Technical Support
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Author: Nick Chong