August 27, 2020 / Analytics

Ethereum Price Analysis: ETH/USD May Drop To $ 360

ethereum forecast

The bearish trend that emerged on August 17 remains in the Ethereum (ETH) cryptocurrency market. If the bulls do not seize the initiative, then ETH/USD will drop to $ 360 by September 3.

Key Points

  • ETH price did not trade in the range above the support zone at $ 400, so ETH/USD began to drop.
  • A downtrend line has formed with resistance at $ 385 on the hourly chart.
  • The nearest strong support barrier is located at $ 370.

This week, buyers broke through resistance at $ 400 again and Ethereum reached $ 411 (Bitstamp data). However, on Tuesday, the virtual currency rate fell by almost 10% – to $ 370. On Wednesday, traders were actively buying ether, so the coin price corrected, but the trend was not broken, and ETH began to fall in price again.

On August 17, Ethereum’s value reached a record high in the last two years – $ 447. Nevertheless, the bullish trend changed to bearish, and the asset lost about 15% in price. These graphs indicate that the rate of the coin may rise to a maximum of $ 398, while by September 3 the price of ETH will be no more than $ 369. With a high degree of probability, the coin will be dumped to $ 360 within the next week.

eth chart

Ethereum Price Will Drop To At Least $ 300

According to the theory of market cycles developed by Jesse Livermore, ETH is now in its fourth stage of movement within the accumulation cylinder. The maximum price indicator for Ethereum ($ 447) is indicated by the fourth point, and the fifth point is in the region of $ 300. Thus, the Livermore pattern indicates that the value of the coin will fall to $ 300.

eth chart

After reaching the bottom, the Ethereum rate will begin to move to the sixth point, located at $ 700. Then coin will be dumped to $ 500 (seventh point). The eighth, ninth, and tenth points assume only the growth of the asset rate without a downward correction, but periods of flat are possible. If we apply Jesse’s hypothesis in relation to ETH, given the historical data, then we can assume that the peak value of the coin will be $ 4500 (10th point).

Technical indicators:

  • 4 hours MACD is in the bearish trend zone.
  • 4 hours RSI is above 40 (in the neutral zone).
  • Major Support Level – $ 370.
  • Major Resistance Level – $ 390.
  • Nearest pivot points: $ 379 and $ 405.
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