Ethereum Price Forecast: ETH Back To The Drawing Board As $370 Calls

Published October 29, 2020 | Updated October 29, 2020

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Ethereum Price Forecast: ETH Back To The Drawing Board As $370 Calls

  • Ethereum dives from highs above $400 to refresh support at $380.
  • ETH/USD is mainly in the bears’ hands and could resume the downtrend to retest the 200 SMA.

The smart contract giant has traded above $400 a couple of times this week. The initial time, ETH tested the resistance at $420 but retreated to $380. Earlier this week, Ether resumed the uptrend above $400 alongside Bitcoin’s surge to new yearly highs. However, ETH/USD stalled under $415, giving the bears a chance to swing into action.

Meanwhile, the smart contract token has retraced the steps significantly under $400 after the 50 Simple Moving Average Support (SMA) in the 4-hour range failed to hold as support. Ethereum continued with the downslide beneath the 100 SMA but has embraced the weekly support at $380.

At the time of writing, ETH/USD is dancing at $387 while the bulls struggle with the 100 SMA resistance. According to the Relative Strength Index (RSI), the path with the least hurdles is downwards. For instance, the bearish trend is accentuated by the RSI divergence from the price.

ETH/USD 4-hour chart

ETH/USD price chart
ETH/USD price chart by Tradingview

Simultaneously, the Moving Average Convergence Divergence (MACD) validates the bearish momentum as it digs deeper into the negative region. Besides, a negative divergence from the MACD shows that sellers have the upper hand, at least for now.

If Ethereum gets rejected from the SMA, there is a likelihood of resuming the downtrend and retesting $380. Continued losses will seek refuge at the 200 SMA in the same 4-hour timeframe. Note that a critical ascending trendline is in line to protect Ether from plunging to $360 or lower.

Ethereum Intraday Levels

Spot rate: $388

Relative change: -0.11

Percentage change: -0.03%

Trend: Bearish

Volatility: Expanding

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
John Isige 946 Articles
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
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