Ethereum Price Forecast: ETH Still Has A Clear Path To $400

By John Isige
Published October 13, 2020 Updated October 13, 2020
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Ethereum Price Forecast: ETH Still Has A Clear Path To $400

By John Isige
Published October 13, 2020 Updated October 13, 2020
  • Ethereum rejected at $395, leaving $400 unconquered.
  • ETH/USD reacts to oversold conditions, but on-chain analysis highlights the most robust support between $351 and $361.

Ethereum majestically closed in on the psychological resistance at $400. However, the smart contract giant hit a barrier at $395, leaving $400 unconquered. Meanwhile, ETH/USD is teetering at $384 amid an ongoing retreat.

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The started over the weekend from levels around $350. Ether recovered in tandem with Bitcoin as it scaled the levels above $11,000. The majority of cryptocurrency assets have reversed from the downtrends sustained since September.

At the moment, the path of least resistance is downwards. The Relative Strength Index (RSI) points sharply downwards, following a rejection from the oversold area. Initial support is expected at $380, but if push comes to shove and Ethereum continues with the downtrend, the 50 Simple Moving Average at $350 will come in handy.

The low trading volume means that declines will not be rapid. Therefore, buyers have a chance to create barricades at higher levels, preferably $380 and $390.

ETH/USD 4-hour chart

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

According to IntoTheBlock’s IOMAP model, ETH has no significant resistance ahead. Nonetheless, if buyers fail to find balance at a higher level, the smart contract token might be forced to seek refuge at the critical support, $351 – $361. Previously, nearly 996,000 addresses purchased roughly 14.4 million Ether. The buyer congestion in this zone is strong enough to absorb the selling pressure in the event losses continue.

ETH IOMAP model

ETH IOMAP chart
ETH IOMAP chart by IntoTheBlock

A bounce from the support will most likely give Ethereum an expected boost towards $400. On the other hand, ETH is yet to wriggle itself from bulls’ grip despite the retreat from $395. The increasing gap between the 50 SMA and the 100 SMA suggests that buyers have the upper hand, at least for now. Moreover, on-chain analysis shows that Ether has a clear path to $400.

Ethereum Intraday Levels

Spot rate: 385

Relative change: 1.58

Percentage change: -0.4%

Trend: Short term bearish bias

Volatility: Low

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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 Isige
1106 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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