Ethereum price jumped to $1,750 on Monday, a price level seen in mid-August. The largest smart contracts token was the focal point of the crypto market as the US Securities and Exchange Commission (SEC) raced to approve Ether futures exchange-traded funds (ETFs). However, the uptrend encountered headwinds leading to a decline back to the $1,600 range.
The bearish grip on ETH has continued to intensify, with the token remaining relatively unchanged over the last 24 hours and trading at $1,645 on Friday. Bulls must rally behind Ethereum price to prevent another dip below $1,600.
Why Q4 2023 Could Be Explosive For Ethereum Price
The crypto market tends to perform well in the last quarter of every year, except in 2022 due to the implosion of FTX exchange. Investors are already looking forward to a bullish October, which has come to be known as the “Uptober.”
Analysts and traders like Altcoin Sherpa believe the fourth quarter of 2023 is the time for Ethereum and other altcoins to shine.
“I expect an extremely explosive Q4 or early Q1, as it always happens.” Altcoin Sherpa said via X. “These are arguably the best times of the year to trade.”
Reading from the ETHBTC price chart, the trader said that he expects Ethereum price to bounce back hard.
$ETH: The time is coming soon to scale into altcoins. I expect an extremely explosive Q4 or early Q1, as it always happens. These are arguably the best times of the year to trade.
Watch for .055 area and then I expect #Ethereum to bounce hard with ETHBTC pic.twitter.com/d0YxeYGELg
— Altcoin Sherpa (@AltcoinSherpa) October 5, 2023
Santiment, an on-chain analytics platform, revealed that exchange outflows amounting to 110k ETH were recorded on Wednesday – “the largest outflow since August 21.” Non-exchange Ether subsequently spiked to an all-time high of 115.88 million ETH with the supply of the token on exchanges dwindling to a five-year low.
This shows that fundamentally, Ethereum is strong which suitably places it in a position to rally if given a chance.
😮 #Ethereum saw about ~110K $ETH ($181M) move off of exchanges Wednesday, the largest outflow day since August 21st. The amount of non-exchange Ethereum now sits at an #AllTimeHigh 115.88M $ETH, while its exchange supply is at its lowest in ~5.5 years. https://t.co/PUOWGt0KS0 pic.twitter.com/u54pp6LZij
— Santiment (@santimentfeed) October 5, 2023
Ethereum Price In Search For Higher Support
Ethereum has since its rejection from $1,750 earlier in the week been involved in an endless search for support to control its downside. The 21-day Exponential Moving Average (EMA) (red) serving as the immediate support at $1,641 must hold in place, otherwise, this search would extend to $1,600.
ETH/USD daily chart | Tradingview
The Relative Strength Index (RSI) upholds the downward trend as it retests support at the midline. Traders interested in shorting Ether must check that the RSI continues to drop toward the oversold area below 30.
Meanwhile, bullish traders should consider the possibility of Ethereum price bouncing back from the support currently provided by the falling channel. A retest of the previous resistance is often interpreted as bullish.
On the upside, a break above resistance at $1,750 would mean that Ethereum is holding above all the key moving averages, including the 21-day EMA, the 100-day EMA, and the 200-day EMA. Such a position would go a long way to lock in the uptrend, thus encouraging traders to consider longing ETH for a larger breakout to $2,000.
