Watch out for when Ether breaks ATH in October

Historically, September was often the worst time for crypto, and this year was no exception. Ether fell 12.58% in September, but it has accelerated very rapidly since the turn of October.

Ether is up 12% in the first five days of the month, but it might just be the beginning. There have been signs that ether has the potential to break the previous all-time high (ATH) as momentum is currently favoring the bulls.

Market structure ether having a rest

Ether price chart | Source: trade view

During the August rally, Ether got very close to the previous $ 4,350 ATH, but September changed its trajectory. Even so, this retracement zone can be seen as an important area for Ether.

The range between $ 2,700 and $ 2,900 acted as strong resistance during the corrections in May but failed to break through and eventually fell below $ 2,000. After rebounding over $ 3,000 last month, Ether found support in the $ 2,700-2,900 range last week before breaking through another $ 3,000.

From this it can be deduced that this area is a liquidity zone that gives Ether upside momentum. While it is still possible to retest $ 3,000, the recovery from $ 2,700 to $ 2,900 plays a very important role.

Funding rate and open interest increase

The futures market is also experiencing positive changes. Data from Crypto Quant shows that all Open Interests (OIs) on the exchange rose after the recent price change when sentiment turned positive. In the meantime, the financing rate has jumped into positive territory at the time of going to press.

With more and more long positions open so far, the positive sentiment could further stimulate the upward momentum in the coming weeks. This will allow Ether to hit or exceed its all-time high (ATH) so far.

Financing rate vs. Ether price | Source: Krypto Quant

However, be different from DAA

The bullish signals are obvious, but watch out for daily active addresses. There is currently a bearish divergence which could result in a sell-signal if the price does not rise soon. Hence, the next few weeks could be crucial for Ether as the volatility could cause an uptrend or break.

Source: Sanbase

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

Mr. Teacher

According to AMBCrypto

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page