September 24, 2020 / Analytics

Ethereum price Analysis: ETH/USD Will Drop To $300

ethereum forecast

The bearish trend continues in the Ethereum (ETH) cryptocurrency market, and the volume of sold tokens is growing. Therefore, ETH/USD should drop in price to $ 300 by October 1.

Key Points

  • The bears broke through the strong support barrier around $ 330.
  • An uptrend line has formed on the hourly chart with support at $ 320.
  • After the completion of the correction stage, the asset price will fall to the next obstacle – $ 300.

The downward movement accelerated on Monday. In three days, ETH dropped from $ 375 to $ 324 (by 13.6%). ETH/USD fulfilled the previous forecast by almost 100%: Ethereum rate rose to $ 396 and began to fall rapidly. Sellers broke through another support barrier ($ 330) on Wednesday, and the ETH rate consolidated below the 100-hour average ($ 340).

There is a bearish flag on ETH/USD chart. It was formed as a result of a dump from $ 480 to $ 324. On September 21, the support level at $ 373 was broken. Given its height, Ethereum price should drop to $ 208 (44%) during the downtrend.


Technical Indicators Point To Ethereum Drop

The bullish trend in the ETH market, which started in March, is largely in line with the uptrend recorded last year. In 2020, ETH rate significantly exceeded the highs of 2019. However, the relative strength index and MACD indicators were at a lower level at the time of the bullish trend. This fact speaks of an imminent decline in the value of the coin in the near future.

eth chart

In 2017, Ethereum was pumped through ICOs, this year DeFi served as the engine of the upward movement, thanks to which the asset was able to reverse the protracted bearish trend. Nevertheless, the attractiveness of the ETH blockchain and, accordingly, DeFI began to fall due to an unprecedented rise in transaction processing fees. On September 2, a record was set for the average commission amount – $ 14,583. During the month, this figure fell to $ 3,127, but is still significantly above the July figures, which fluctuated in the range from $ 0.51 to $ 1,897.

Technical Indicators

  • 4 hours MACD is in the bearish trend zone.
  • 4 hours RSI is above 30 (in the neutral zone).
  • Major Support Level – $ 300.
  • Major Resistance Level – $ 330.
  • Nearest pivot points: $ 294 and $ 333.
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