Ethereum News Today: Ethereum Bounces After 10% Dip as Market Odds for $5,000 Stay Above 70%

Ethereum (ETH) remains in a strong bullish trend despite a recent 10% correction following a brief all-time high above $4,900 [1]. Prediction market data from Myriad, a platform operated by Decrypt’s parent company, indicates that traders are still highly confident in ETH’s future. The odds of Ethereum reaching $5,000 within the next four months remain at approximately 80% on one market, and nearly 73% on another [1]. These figures have dipped slightly from their recent peaks of 90–95%, but they have not fallen below 70%, highlighting continued optimism among market participants [1].

Ethereum’s price action also supports a bullish interpretation. After a volatile weekend that saw a large Bitcoin whale offload $2.7 billion worth of BTC, triggering a broader market selloff, ETH briefly dipped but quickly rebounded into positive territory [1]. The technical setup remains favorable for long-term bulls, with the 50-day exponential moving average (EMA) positioned above the 200-day EMA—a bullish “golden cross” formation observed last month [1]. This configuration typically signals strong buying pressure across multiple timeframes and aligns short-term traders with long-term investors.

Key technical indicators reinforce the bullish outlook. The Average Directional Index (ADX) for Ethereum stands at 39, indicating a strong trend, with readings above 25 considered significant and above 40 signaling powerful momentum [1]. The Relative Strength Index (RSI) is currently at 58, which is within the optimal range for continued gains. This level suggests that Ethereum has recovered from oversold conditions without entering overbought territory, leaving room for further upward movement before triggering algorithmic sell-offs [1].

Additionally, the Squeeze Momentum Indicator is active, signaling a breakout from a consolidation phase. This indicator, combined with today’s recovery candle, suggests that while the overall trend remains bullish, short-term volatility should be expected [1].

Price levels to watch include immediate resistance at $4,800, strong resistance at $5,000–$5,200, and key support levels at $4,000 and $3,500. If Ethereum can hold above these support levels, particularly during historically weak September trading conditions, it could move toward the $5,000 target as early as October [1]. Historical data shows that September has been a challenging month for both Bitcoin and broader stock markets [1]. However, October has historically been a strong month for crypto, with the market seeing an average gain of 22% and some years recording over 60% returns [1].

While September poses a potential risk to momentum, the current technical outlook and market sentiment align with a bullish trajectory for Ethereum. The combination of strong EMA trends, favorable RSI levels, and active momentum indicators supports the view that ETH is on track to reach $5,000—especially if the $4,300–$4,500 support zone holds through the month [1].

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Source: [1] [Will Ethereum Go Higher? Markets Remain Bullish: Analysis](https://decrypt.co/336931/ethereum-price-higher-myriad-prediction-analysis)