Ethereum Price Prediction: ETH Soars 6% – What’s the Attraction?

The Ethereum price has skyrocketed 6% in the past 24 hours, with the ETH/USD trading at $2,430. Accompanying the price movement is its 24-hour trading volume, which has surged 3% to $20 billion, signaling an increase in market activity.

On the other hand, the pioneering cryptocurrency Bitcoin has gone ballistic, increasing by 4% to $62,835 at the time of writing. The recent price movement comes following the Fed’s 0.50% interest rate cut – the first in 4 years. This move has brought renewed optimism to the crypto market.

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BREAKING: The Federal Reserve has cut interest rates for the first time since the start of the pandemic, cutting rates by 50 basis points.

The Fed says it has "greater confidence" that inflation will return to a normal level.

The cut was more aggressive than what many… pic.twitter.com/0xY9I6y78H

— Collin Rugg (@CollinRugg) September 18, 2024

Meanwhile, data from Coinglass shows that traders and investors are confident about the price of Ethereum. This is evident as there are many long positions compared to short positions. In other words, this suggests that investors are confident that the price of ETH will rise soon.

Furthermore, if the bulls weaken the $2,541 resistance zone, $2,810 will be a key level to watch. Once ETH breaks it, the bears will be left in the dust. Let’s dive into the technical information to decrypt more.

Ethereum Statistical Data

Based on CoinmarketCap data: 

• ETH price now – $2,430
• Trading volume (24h) – $20 billion
• Market cap – $292 billion
• Total supply – 120 million
• Circulating supply – 120 million 
• ETH ranking – #2

ETH Price Aims to Break Above the Falling Channel

The Ethereum price has been on a downtrend since early August following the crypto market downturn. However, the bulls took the reins and attempted a rally but faced resistance around the 2,801 zone, leading to a retracement.

The $2,200 mark, however, acted as a cushion against any further losses, as the bulls have now gained momentum attempting a strong upswing. Currently, the bulls are gearing towards clearing the technical barrier at $2,541, which coincides with the 50-day SMA(green). A significant break out above the aforementioned resistance zone would initiate a rally to see the bulls soon target the next barrier at $2,810. 

The Relative Strength Index (RSI), as seen on the daily chart timeframe, calls on traders to buy more ETH. This could lead to a rebound that would briefly brush shoulders with $2541. If the buyers hold above the confluence area at the 50-day Simple Moving Average (EMA) (green), it will encourage already sidelined investors to enter the market without worrying about sudden corrections.

Holding above the $2,541 zone would be crucial for triggering an uptrend otherwise, investors may be forced to acclimatize for another sweep at the $2,288 support.

Moreover, traders are at liberty to hold their long positions in ETH intact, bolstered by the bullish outlook from the Moving Average Convergence Divergence (MACD) indicator. A buy signal is manifested with the blue MACD line stepping above the signal line in orange. The momentum indicator notably trends upwards into the positive region – above the mean line at 0.00. Meanwhile, traders and investors are inclined to buy more ETH unless the MACD changes.

Ethereum Price Outlook 

In the daily chart above, the ETH price is gearing towards a breakout above the governing channel, which would potentially trigger a rally. On the upside, if traders capitalize on the MACD, which signals a buy signal, the ETH price could surge. In the meantime, all eyes are on the immediate resistance at $2,541, which might allow buyers to elevate ETH higher toward $3,000 if weakened. 

On the downside, if the bears capitalize on the 50-day and 200-day Simple Moving Averages (SMAs) which suggest some bearish prospects, the ETH price could drop. However, the $2,288 support will cushion against any further losses.

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