Ethereum (ETH) cryptocurrency rate is correcting after a powerful pump. If buyers fail to defend the support zone around $ 430, ETH/USD will drop in price to $ 407 by September 10.
Ethereum rate increased by 14% on September 1. Buyers broke through the resistance barriers at $ 460 and $ 480 during the bull run. The asset price reached $ 490 (Bitstamp data) – the maximum indicator in two years. However, on Wednesday, ETH began to dump. At first, ETH “stumbled” by 9%, then dropped in price by another 2% and bottomed out at $ 420. The upward correction after the massive dump fizzled out around $ 450, so the bears again seized the initiative and merged the coin’s value to $ 433.
But the dynamics of changes in the Ethereum rate did not go beyond the upward trend line that arose in July. Judging by the graph, the value of the cryptocurrency could drop to $ 407 without affecting the overall trend. Most likely, ETH will be dumped to this level, after which a new bull run will inevitably start.
On September 2, technical indicators indicated that ETH was overbought. In particular, the RSI exceeded the standard indicator (70) by one point before the dump. The TD Sequential indicator for the week indicates that the correction after the pump has not yet been completed. Given the historical data, the price of the coin may decline to the nearest powerful support zone of $ 390. If sellers overcome this barrier, the coin will be in free fall up to $ 300.
However, a reversal in the market is unlikely. Ethereum is poised to fly to $ 500, not the moon, but also high. During the last pump (from 28 August), the value of the asset increased by 32%. Therefore, if ETH is merged to $ 400, then as a result of the next spurt, the value of the coin may well reach $ 528.