Ethereum (ETH) price today is up 1.71% and trades at $2,673. In the past ten days, ETH has surged 10%, ending its lackluster performance since August. This recent uptick bullish momentum has got investors wondering if ETH will hit $3,000 in October.
Based on technical and on-chain analysis, there is a high chance Ethereum price will hit $3,000 and go beyond, potentially revisiting the $3,500 level. Supporting this outlook is historical price performance data which shows that October is generally bullish for crypto markets. However, there is a caveat, ETH might correct first before hitting $3,000.
Why is Ethereum Rising Today?
Ethereum price today is trading at $2,673 after being up 1.71% on the day. This sudden spike in buying pressure is due three reasons:
- Due to Bitcoin’s recent breach of the six-day consolidation into a critical resistance level at $65,000. Ethereum and other top altcoins have also shot up double digits in just a few days due to BTC’s uptick.
- Additionally, the bearish third quarter coming to end is another reason why Ethereum is rising today.
- Finally, the month-end price action is usually volatile, which could be the reason why ETH has been up 10% in the past ten days.
Does this mean Ethereum price will continue its rally to $3,000? Unlikely. On-chain metrics show that ETH is due for a short-term correction. Additionally, BTC might also correct over the weekend, so investors need to be cautious.
Short-term Correction Likely for ETH
According to Santiment’s 30-day Market Value to Realized Value (MVRV) ratio indicator is hovering around 6.5%. Investors can note that the previous entry into the 6% to 10% range has often led to reversal in Ethereum price even during an uptrend. So, a correction could be brewing for ETH on the short-term outlook.
However, this correction could occur over the weekend or in the next week, which will allow Ethereum price and 30-day MVRV to tick higher into the danger zone, extending from 6% to 10%.
Based purely on a technical analysis standpoint, there is a good chance that Ethereum price not only hit $3,000, but surpasses it.
Ethereum Price Analysis: ETH to go Beyond $3,000 in October
Ethereum’s daily price chart shows that it is trading inside a range, extending from $2,309 to $2,820. Based on the price action, investors need to observe the September 23 swing high of $2,702. If buyers fail to hold momentum around this level, resulting in a swing failure pattern, then a correction in ETH price is likely.
Such a development could see Ethereum revisit the $2,252 to $2,440 demand zone. This area will be a key buy zone heading into the fourth quarter. Considering that October has historically yielded gains, investors can buy the dips and prepare for an upswing that retests the range high at $2,820.
If the range high is flipped after the aforementioned 15% move, investors can expect a retest of the daily and weekly hurdle at $2,886 and $2,923, respectively. Considering seasonality, a retest of the $3,000 psychological level is not unlikely.
Consolidation between $2,800 to $3,000 is something investors should from ETH if the buyers mean business. Such a development would signal that further gains are incoming. A breakout from this range bound movement could lead to another quick impulsive move to the next key hurdles at $3,352 and $3,497.
All in all, the outlook for Ethereum looks far better than it did a month ago. Ethereum price forecast hints at a correction leading to a retest of the $3,000 psychological level that could extend into $3,500. However, investors need to be patient in taking advantage of the upcoming move.
The post Ethereum Price: Will ETH Hit $3,000 in October? appeared first on CoinGape.
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