Ether heads towards record high
Ether heads towards its record high, having bounced off its August uptrend line.
Ether eyes record high
Ether bullish case:
Ether's bounce off its August uptrend line at $4,315.82 on Tuesday may put its mid-August high at $4,789.73 and its 24 August record high at $4,954.16 back on the cards, together with the psychological $5,000 mark.
This bullish technical view will remain in play while Tuesday's low at $4,315.82 holds on a daily chart closing basis.
Ether bearish case:
Since Ether's record high at $4,954.16 has been accompanied by a lower reading of the daily Relative Strength Index (RSI), negative divergence occurred, meaning that the possibility of a top forming remains at hand.
If so, a drop through Tuesday's $4,315.82 low may trigger a retest of the its key $4,105.53-to-$3,941.08 support zone. It consists of the March, May and December 2024 as well as the July 2025 highs and as such should act as strong support.
If not, the 21 July high at $3,858.25 may be reached as well.
Only a major bearish reversal and fall through the next lower early August low at $3,356.65 would increase the odds of a medium-term top forming.
In this scenario the area between the February-to-June highs at $2,879.45-to-$2,733.27 might be revisited.
Ether daily candlestick chart
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