Ethereum rose today morning during the Asian session against the U.S. Dollar. Ethereum broke above $400 psychological level. What is next? What are the charts and technical indicators are saying? Read more to find further insights into today’s ETH/USD Technical Analysis.
October 23, 2020, | AtoZ Markets – Ethereum is currently trading around $415 area and trying to climb upward. However, the price found support on the dynamic level of 20 EMA and strikes higher quite aggressively, according to the daily chart. As per the current price action, the price is currently facing strong resistance around $415 to $420 area.
The third-quarter decentralized fund (DeFi) blast has brought about the Ethereum (ETH) network handling more than double the everyday exchange volume of Bitcoin (BTC). As per crypto market information, the 30-day reeling everyday average for Ethereum exchange volume is as of now $7 billion, with Bitcoin handling under $3 billion. If the current bullish bias sustains, Ethereum will turn into the primary public blockchain to settle $1 trillion in transfers over the current year.
Ethereum Broke Above as the Trading Volume Raised Record High This Year
Ethereum is currently trading around $415 area and trying to recover higher. Moreover, the Bollinger Bands upper band holding the price as strong resistance, which indicates that the price may retrace lower in the days ahead.
Image: Ethereum 4 Hour Chart
According to the 4-hour chart, Ethereum broke above and currently residing near $415 area. As per the current scenario, if the price can have a bearish 4-hour candle close below $415 to $420 area, ETH may retrace downside towards $400 to $395 area in the coming days. So, if the price retraces down and bounces higher from $400 to $395 area, the bulls may sustain the bullish bias towards $415 to $420 area as a first target. The second target will be $440 to $445 area in the coming days.
Furthermore, the dynamic level of 20 EMA is currently residing below the price. Along with the Bollinger Bands middle band. So, the dynamic level may act as a strong support if the price retraces towards $400 to $395 area. Besides, the Bollinger Bands middle band may work as a confluence of the dynamic level in the process.
ETH Bulls Are Optimistic
According to the daily chart, Ethereum broke above and currently residing near $415 area. As per the current price action, if the price can break above $415 to $420 resistance area impulsively, the bulls may recover higher towards $440 to $445 area as a first target. The second target will be $490 to $500 area if the price can break above $440 to $445 area in the coming days.
Image: Ethereum Daily Chart
In addition, the dynamic level of 20 EMA is currently residing below the price, which may work as strong support in the process. Besides, the MACD lines are currently residing above 0.00 area and gradually moving upward. It indicates that bulls may sustain the bullish pressure further in the days ahead.
To conclude, after an extended period of volatility the bulls are able to broke above the psychological resistance level. A daily close is required to identify the definite momentum in the coming days.