Ethereum (ETH) cryptocurrency rate is consolidating near a powerful resistance zone at around $ 400. If the ETH value overcomes this barrier, the coin will rise up to $ 432 by August 13.
On August 2, Ethereum’s price peaked in the past two years – $ 415. After that, the virtual currency rate fell to $ 350, but then corrected to $ 390. This week, buyers overcame resistance at $ 400 three times but failed to consolidate above this level.
On Thursday, the dynamics of the ETH rate change went beyond the bullish trend that emerged on August 2. Therefore, there are two options for the development of events. If during the next session the price of the asset does not exceed $ 400, then the coin will fall in price to the support zone of $ 380. Otherwise, the coin value will increase to $ 420. Successfully breaking this barrier will mean a pump up to $ 432.
There is a cup-and-handle pattern on the chart, indicating an upcoming rise in the ETH rate. After the formation of the pattern, the price of the asset should rise by about 33% of the cup size, that is, up to $ 415.
During the dump from $ 415 to $ 350, ETH worth over $ 100 million were sold. Nevertheless, the massive sale of the asset did not provoke the liquidation of long positions, as they remained profitable despite the sharp drop in the value of ETH. Therefore, analysts believe that it is too early to bury bull run.
On August 5, information appeared about a new bill aimed at stimulating the US economy, which was sagging due to the coronavirus epidemic. Economists predict that the adoption of the regulation will significantly increase the liquidity of financial markets. In the wake of expectations, the rate of oil, gold rose, as well as the S&P 500 and Dow 30 indices. Experts believe that the decree will have a positive impact on the digital asset industry, and the price of ETH will continue to rise.
4 hours MACD is in the bearish trend zone.
4 hours RSI is above 60 (in the neutral zone).
Major Support Level – $ 380.
Major Resistance Level – $ 400.
Nearest pivot points: $ 364 and $ 406.