The market was running out of steam as this slight push ran into strong technical resistances. Despite a notable intraday range and a daily high of $4,416.45, Ethereum, on the other hand, displays a modest loss of 0.25%, at $4,303.99.

These little but erratic fluctuations reveal a type of tense stagnation that is common in the lead-up to a trend reversal.

Technically speaking, several indicators support this finding:

Bitcoin’s relative strength index, or RSI, is at 44 right now, meaning that there is “a neutral to slightly bearish momentum” without any automated buy or sell recommendations.
The average directional index (ADX) for bitcoin is 20, which is a low value that “suggests an absent or poorly defined trend” and frequently signals the start of dramatic movements;
The RSI for Ethereum is at 50, indicating that buyers and sellers are in a perfectly balanced market;
The Ethereum ADX, which is just over 25, indicates that the trend is still present but has been slowing down for a few days.

Lastly, the “OFF” Squeeze Momentum Indicator’s lack of activity supports the idea of a compression phase that is favorable for a brief breakout but lacks a distinct direction.
These factors come together to suggest that the market is still paused pending an internal or external trigger.

Divergent predictions and contradictory technical signals

The predictions provided on the Myriad Markets platform present a far more contrasting image of the market than price analysis, which provides a comparatively peaceful picture.

Pessimism is growing on the bitcoin front. Currently, traders predict a 66% chance that Bitcoin would drop below $105,000, compared to 34% for a comeback to $125,000. These numbers show a significant change from forecasts made two weeks ago, when only 44% anticipated such a significant decline.

However, 60% of traders are banking on a comeback to $5,000 before a potential decline back to $3,500, indicating that Ethereum continues to benefit from a somewhat bullish mindset. However, given that the chance was 73% the week before, this confidence is eroding.

Additionally, for Bitcoin and Ethereum, exponential moving averages (EMA) provide conflicting indications. The 50-day EMA is still above the 200-day EMA in both cryptocurrencies’ present “golden cross” configuration, which is frequently interpreted as bullish.

This arrangement is in jeopardy, though, as the difference between these two averages starts to close—an evolution that is sometimes seen as a waning of the present trend. While more aggressive speculators would expect a more significant correction, long-term traders might view this as a buying opportunity on dips.

Despite a cautious start to the market, volatility, which is yet subtle, might rapidly increase throughout the month. September is frequently associated with violent reversals, as recent history demonstrates. The next few days may be pivotal for Ethereum and Bitcoin. Uncertainty reigns due to a difficult macroeconomic environment, conflicting forecasts, and brittle technological indicators. While some will perceive the start of a new bearish cycle, others may regard these brief drops as opportunities for accumulation.