The upward movement has accelerated in Ethereum (ETH) cryptocurrency market. However, a strong resistance zone has formed at the $ 400 mark. Therefore, ETH/USD will be adjusted to $ 375 before the next pump.
The value of ETH dropped to a local bottom at around $ 360 (Bitstamp data) on Tuesday. This barrier withstood, so ETH/USD began to rise. The price of the cryptocurrency increased by 9% – from $ 368 to $ 400 on Wednesday. The buyers overcame powerful obstacles of resistance in the region of $ 375 and $ 385 as a result of the pump. However, the $ 400 mark turned out to be too tough for the bulls, and the price of Ethereum began to adjust.
Now the ETH rate is fluctuating in the range above the 76.4% Fib, fixed during the pump from $ 360 to $ 401. The nearest support barrier is located at $ 393. If the bears overcome this barrier, the price of the coin will drop to $ 388 (61.8% Fib). However, the nearest key support area is at $ 375. With a high degree of probability, the asset price will be dumped to this barrier.
A bullish trend emerged in the Ethereum market on September 23rd. In early October, the price of the coin dropped to the trend line. This fact, combined with the absence of a tangible correction for two weeks, indicates an impending fall in the cryptocurrency rate. Potentially, the price of the coin could drop to $ 350. Breaking through this barrier will provoke a massive sale of coins.
The price of ETH reached a record high in the last two years – $ 490 thanks to hype around DeFi. Bitcoin (BTC) rate rose to a maximum value ($ 13,246) on October 22. Moreover, BTC was ahead of its younger brother in terms of value growth rates and increased its dominance. Historical data suggests that after the Bitcoin era is the altcoin season. If this situation repeats itself in 2020, then the Ethereum rate will exceed its peak value of $ 490.
According to the chart, ETH market is in the stage of correctional wave B now. The upward trend will continue if the bulls break the $ 400 barrier. The next resistance is located at $ 420. The first barrier is at the 50% Fib recorded during the dump from $ 490 to $ 320, and the second is at 61.8%. Wave C is most likely to occur after a rebound from one of these barriers. At the same time, the potential bottom is located in the region of $ 250.
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