Ethereum (ETH) cryptocurrency price is correcting after the pump, but the market is dominated by a bullish trend, so the coin should rise to $ 400 by October 22.
ETH rate has grown by 18% over the past seven days. As a result of the pump, Ethereum price broke through the resistance around $ 390 and reached a maximum of $ 395. However, the bulls were unable to hit this barrier on the first try, and the price of the coin fell to $ 375 – the nearest key support zone. A strong barrier of resistance is in the $ 385 region, which coincides with the 50% Fib recorded during the dump from $ 395 to $ 375. If buyers break through this barrier, then the ETH rate will rise to $ 390. The next obstacle is located at $ 395.
According to the chart, Ethereum price should break through the downtrend line that started on Monday. In this case, the bullish trend that appeared on October 8 will continue in the market, and the value of the coin will rise to $ 400. A negative scenario is possible if sellers break through the uptrend line. At the same time, the price of ETH may fall to $ 365 – the nearest serious support barrier.
The dynamics of changes in the ETH rate is fully consistent with the “Wall Street Cheat Sheet” based on the psychology of traders and wave theory. In the second half of 2019, crypto investors were angry about financial losses, and in early 2020, depositors fell into depression due to a long period of flat. The pump that started in July did not instill in traders confidence in the high potential of ETH, so bull wounds are treated with distrust.
According to the cheat sheet, suspicion will be replaced by hope for a bright future ahead of a new cycle. Hope will grow into optimism, optimism – into faith, faith – into excitement, and excitement – into euphoria, followed by bitter disappointment. As a result of the bullish rally, Ethereum rate should break the record set in January 2018. Given the historical data, it can be assumed that the bull run will last until October 2021, and ETH cost will exceed $ 1400.
4 hours MACD is in the bearish trend zone.
4 hours RSI is above 50 (in the neutral zone).
Major Support Level – $ 365.
Major Resistance Level – $ 385.
The nearest pivot points are $ 361 and $ 390.