October 1, 2020 / Analytics

Ethereum Price Analysis: ETH/USD Will Drop To $320

ethereum forecast

Ethereum (ETH) cryptocurrency rate did not consolidate in a range above the resistance zone around $ 365. Therefore, a correction should occur in the market, as a result of which the price of the coin will fall to $ 320 by October 8.

Key Points

  • The bulls broke through the resistance at $ 360 but failed to build on the success.
  • An uptrend line has formed on the 1-hour chart with support at $ 360.
  • ETH is hovering above the 100-hour average at $ 355, which acts as a support barrier.

The value of Ethereum fell by 4% (from $ 364 to $ 350) on Tuesday. However, support at $ 350 withstood the pressure, and the asset price returned to its previous level – $ 364. During the pump, buyers crossed the 23.6% Fib, which was fixed as a result of the price drop from $ 369 to $ 350. But the $ 365 barrier was too tough for the bulls.

On September 26, the dynamics of changes in the ETH rate went beyond the bearish trend line that arose at the beginning of the month. Judging by the chart, during the week the value of the cryptocurrency will fall to about $ 320 – at this point, there is a downtrend line, which serves as a key support zone. Ethereum value should bounce upward from this barrier. If the bears break through the $ 320 barrier, then the coin price will go down to $ 300.

ethusd

A Bullish Trend Is Brewing on Ethereum Market

ETH price broke the exponential moving average indicator in 21 days. This fact indicates:

  • completion of the correctional wave C;
  • the start of wave 1 of a bullish trend.

ethusd

Wave theory speaks in favor of an uptrend in the Ethereum market. But common sense suggests that the correction is not over yet. ETH/USD was pumped from $ 88 to $ 489, during the dump the price was leaked by only 37% – up to $ 309. Moreover, wave A ended at $ 309.70 and wave C at $ 312.15. Cases, where the bottom of wave C was above the low of wave A, have never been fixed on the Ethereum chart.

Therefore, it seems that market makers have set a trap to force traders to buy ETH at $ 360-370 in anticipation of a powerful dump. Therefore, the purchase of a coin now carries too high risks.

ethusd

On September 23, a death cross formed on the chart, and the price of ETH plunged 11%. Since September 25, the lines of short-term and long-term moving averages are converging. If the positive dynamics of the change in the rate of the digital asset continues, then in October the lines will cross, forming a golden cross. In this case, with a high degree of probability, the upward movement will accelerate, and it will be possible to assert with confidence that the first wave of a bullish trend has occurred.

Technical indicators:

  • 4 hours MACD is in the bullish trend zone.
  • 4 hours RSI is above 50 (in the neutral zone).
  • Major Support Level – $ 355.
  • Major Resistance Level – $ 365.
  • The nearest pivot points are $ 348 and $ 373.
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