Ethereum (ETH) cryptocurrency rate fell by 3.6% over the past day. At the press time, ETH/USD is fluctuating in a range above the support zone around $ 400. If the bulls do not seize the initiative, Ethereum price will fall to $ 380 by August 27.
This week, Ethereum value reached its highest level since July 2018 – $ 447 (Bitstamp data). However, a correction began on Monday and the coin lost 9% in value. On Wednesday, the bears drained a large volume of coins and broke the $ 400 barrier. ETH fell to $ 395, but then rose to $ 415 and is now trading in the $ 400-409 range.
The nearest strong resistance zone is located at around $ 415, which coincides with the 23.6% Fib recorded during the dump from $ 447 to $ 405. At the same time, the 100 hours average is at $ 425. Thus, for the development of an uptrend, the bulls need to overcome the barriers of $ 415 and $ 425. Otherwise, the pressure on the coin will increase and the price may collapse to the nearest key support zone of $ 380. The next barrier is at $ 365.
Last week, the number of transactions on the ETH network reached a high level, comparable to the figures recorded from December 2017 to January 2018. The historical record was set on January 4, 2018 (1.34 million transfers per day), and on August 10, this value was 1.27 million. Moreover, on August 12 and 13, transaction fees soared to 17,800 and 20,300 ETH, respectively. According to experts of analytical firm Santiment, these statistics indicate an increase in demand for the coin.
Since March 2020, Ethereum has almost quadrupled in the price – from $ 100 to $ 447. However, traders’ opinion about the future of cryptocurrency is divided. Some believe in the continuation of the bull run and predict a pump up to $ 600. Others believe that the coin will be dumped to the $ 200 mark. Judging by the dynamics of changes in the ETH rate, the bullish trend has been fizzling out since August 1 due to the high activity of sellers. Most likely, the price of a digital asset will not stay above $ 400 and will fall.