ETH price retreats to $382 lows amid increased selling pressure
ETH/USD rose to highs of $421 this past month, adding about 7.5% to its value by monthly close on October 31. The price has not traded higher as anticipated though, with a slump over the past 24 hours eating into the gains made over the weekend as the ETH price rose to highs of $404.
Ethereum technical outlook
Instead of closing in on the $400 hurdle again, the action suggests that the bears could attempt to push prices lower. This outlook follows the ETH/USD pair moving lower to touch lows of $382 after spiking to highs above $400.
Ethereum’s failure to hold above $400 has increased the downside pressure. Short term, the correction could see the bears push beyond the initial support zone near the $385 area.
The daily chart suggests that the Ethereum price is at risk of dipping below the 20 – day SMA, which would mean that the bulls need to defend gains near $380 – $350.
At the time of writing, the 4 – hour chart shows that the Ethereum price has crossed beneath the 20, 50 and 100 exponential moving averages.
The RSI indicator is also sloping to imply that the bears are likely to seize control if the downward pressure continues.
If sellers succeed in taking the prices lower, the 100 – SMA and the 50 – SMA near $378.93 and $377.45 provide support. The next support level below these buy zones lies at the 100 – SMA area at $371.38.
Notably, the 5% downturn in intraday trades could encourage the sellers thirsting for a retest of the area around $350. Here, the bears need to cross the 50% Fibonacci retracement level near the $365.21 area, with the 100 – EMA on the daily chart providing support near the all – important $350 area.
What about ETH upside?
The sentiment ahead of the launch of ETH 2.0 is high for Ethereum, which could help the bullish case going forward.
If bulls retake control in the short term, the upside would take ETH/USD to the major resistance area around 38.2% Fibonacci retracement level at $395. Above this price level, bulls would need to flip the barrier at the $400 psychological hurdle to clear the path to $415 and the 23.6% Fibonacci retracement level at $430.
ETH/USD rose to highs of $421 this past month, adding about 7.5% to its value by monthly close on […]