May 28, 2020 / Analytics

Ethereum Price Analysis: ETH/USD Is Trading In A Flat

Ethereum analysis forecast

Ethereum cryptocurrency rate (ETH) has fixed above the support zone in the region of $ 200 and added about 2.5% over the past day. However, after the growth, a correction began, as a result of which the coin should become cheaper by $ 200 by June 4.

Key Points

  • The bulls broke through the powerful resistance barrier at $ 205.
  • On the hourly chart, a downtrend line has formed with resistance in the region of $ 206.
  • To develop a bullish trend, buyers need to overcome the $ 210 barrier.

On May 26, ETH/USD fell below $ 200 once again  But after this, a reversal occurred, and the asset rate returned to its previous level – $ 205. During the last pump from $ 196 to $ 209, the dynamics went beyond the bearish trend that arose on May 19. But the price stayed above the downtrend line for only a few hours.

Cryptocurrency is trading at 50% Fib recorded during the Ethereum price drop from $ 211 to $ 196. The probability of acceleration of the downward movement will remain until the ETH rate is below $ 206. Given the dynamics of changes in the value of the coin over the past month, we can assume that Ethereum will fall in price by about $ 200. A correction will occur in the direction of $ 205 after reaching this mark.

Bull Run Coming In Ethereum Market

Since May 18, the price of ETH has been fluctuating inside the contracting triangle, so the level of volatility is gradually decreasing. Since May 23, differences do not exceed 5%. Judging by the schedule, the price of Ethereum will not fall below $ 200. The upper bar will be about $ 206. The lines of the figure will intersect on June 2-3, and the flat should end.

ethusd chart

Many analysts predict the start of a bull run in the ETH market. In particular, the founder of Mythos Capital, Ryan Adams, believes that Ethereum will rise in price by about half, as the coin is underestimated. As a confirmation of his words, he published a graph of the change in the value of the coin and the size of the transaction fee.

eth fee

The chart shows that in May, the fee for processing transfers increased significantly due to an increase in the number of transactions completed. According to Adams, this fact indicates an increase in demand for Ethereum. The growing popularity of cryptocurrencies will allow attracting investments, which will positively affect the level of Ethereum market cap. Apparently, the turning point should come in early June. The price of ETH will soar up or fall down depending on the direction the triangle is broken.

Technical indicators:

  • 4 hours MACD is in the neutral zone.
  • 4 hours RSI is above 50 (in the neutral area).
  • The main support level is $ 200.
  • The main resistance level is $ 210.
  • Nearest pivot points: $ 202 and $ 212.

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