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. The post Ethereum Price Forecast: ETH Back To The Drawing Board As $370 Calls appeared first on Coingape.

Oct 29, 2020 - 09:34

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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

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.