Ethereum Price Analysis: ETH/USD Will Reach $422
October 29, 2020 / Analytics
Ethereum (ETH) cryptocurrency rate corrected after a powerful pump to $ 410, but it did not fall below the uptrend line. Therefore, ETH/USD should rise to $ 422 by November 5th.
- Sellers broke through support around $ 400 and consolidated below this level.
- A bullish trend line has formed with support at $ 390 on the hourly chart.
- Ethereum value will rise if the bulls overcome the $ 400 resistance zone.
On Monday, an upward trend emerged in the ETH market. Buyers were able to break through resistance barriers at $ 395 and $ 400. The cost of the cryptocurrency reached $ 410 (Bitstamp data), but the rate did not stay above this level and began to fall. As a result of the dump, the Ethereum price dropped to its lowest level in the last week – $ 380.
On Thursday, ETH/USD began to correct and exceeded the $ 390 level. The upward movement will meet strong resistance at $ 400. If this barrier is taken, then the asset will rise in price to $ 410. The nearest support barrier is located at $ 380, which coincides with the 61.8% Fib recorded during the pump from $ 320 to $ 422.
On October 28, the ETH rate fell below the bullish trend line that started at the beginning of the month. However, on Thursday the price of the coin exceeded this line. Thus, if the dynamics of the Ethereum price change is kept within the upward trend, then within the next week the price of the coin will return to its previous height – $ 422. Otherwise, the asset price may decline to the bullish trend line that emerged in March, which is now at $ 340.
Ethereum Will Rush To $ 490
Analyzing the performance of the ETH blockchain yields conflicting results. On the one hand, since October 24, there has been an increase in the number of new addresses, and in the volume of trade during the pump. On the other hand, the number of active wallets is growing, which indicates a shift in market sentiment towards euphoria. According to the Wall Street Cheat Sheet, euphoria is an indicator of an impending dump and anticipates a protracted bearish trend.
Many traders expect the price of ETH to rise to $ 490 if the asset fluctuates above $ 400. As long as the value of the coin is below this mark, there is a high probability of a dump. In addition, on October 28, the Ethereum price crossed the EMA line again in 144 days. This fact indicates an impending bearish trend and destroys the hypothesis of the first wave of an upward trend in the ETH market.
- 4 hours MACD is in the bearish trend zone.
- 4 hours RSI is above 40 (in the neutral zone).
- Major Support Level – $ 380.
- Major Resistance Level – $ 400.
- The nearest pivot points are $ 375 and $ 397.