Ethereum Stuck At $388, What’s Needed For Another Rally?

By November 1, 2020Ethereum
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Ethereum stuck at the $388 level as it struggled to continue higher and decline below $400 against the US Dollar. The price is consolidating the losses and it has to surpass the $395 level for a new rally as we are reading more in today’s Ethereum news.

The ETH price corrected lower below the $400 and the $392 support levels against the US dollar as the price started trading close to the $385 zone and the 100 simple moving average. There’s a major bearish trend line forming with the resistance near the $395 on the 4-hour charts of ETH/USD as the pair will likely rally if it manages to clear the $92 resistance level.

eth.usd
Source ETH/USD on TradingView.com

Recently, Ethereum stuck at $388 before starting a downside correction from well above the $400 against the US dollar. The ethereum price traded below the $392 support level and the 100 simple moving average so a swing low was formed near the $373 and the ETH price started an upside correction after the BTC sharp increase to $14,000. There was a break above the $380 and the $382 levels as the price climbed above the 23.6% Fib retracement level from the downward movement at $410 high to $373 low.

However, the price seems to be facing a strong resistance close to the $392 range which is close to the 50% fib retracement level of the downward movement from the $410 high to $373 low. The next major resistance will be set at the $395 level and the $396 level as well. There’s a major bearish trend line forming with the resistance close to $395 on the 4-hour charts of the pair so a successful break above the $392 level could start a fresh rally in the near-term. The next resistance is close to the $400 price range above which the bulls could aim a retest of the $420 resistance zone in the upcoming sessions.

eth 24 hours chart
ETH 24-hour Chart (Source: Coingecko)

If ETH fails to clear the $392 level and the $395 resistance zone, it could start a fresh downside correction. The initial support on the downside is close to the $382 border. The main support is forming close to the $373 low so further losses could lead the price to the crucial $365 support. The 4-hours MACD for the pair is struggling to gain momentum in the bullish zone while the 4-hour RSI is well below the 50 levels.

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