Ethereum has become volatile and corrective after reaching around $490 to $500 resistance area. Ethereum facing resistance around $500 area as it is a psychologically key level. Bears to regain momentum? What are the charts and technical indicators are saying? Read more to find further insights into today’s ETH/USD Technical Analysis.
November 20, 2020, | AtoZ Markets – Ethereum price fall today morning during the Asian session against the U.S. Dollar. Ethereum is currently trading around $485 area and facing resistance. After bouncing from the dynamic level of 20 EMA on the daily chart, the bulls pushed the price upside quite impulsively and hit September’s high. As per the current price action, ETH may revert back to the mean in the coming days.
Moreover, Ethereum center engineers hit a huge achievement. In a “snappy update” on the Ethereum Foundation blog, engineer Danny Ryan affirmed the salvation of the v1.0 specs for the long-awaited Ethereum 2.0 upgrade, which incorporates the mainnet deposit contract address. Any individual who needs to take an interest as a validator on the Ethereum 2.0 mainnet would now be able to begin depositing their base stake of 32 ETH.
Ethereum Facing Resistance as the Key Level Working Strongly
ETH is currently trading around $485 area and trying to push upward. However, the price found support on the Kijun line and the Tenkan line on the intraday chart.
Image: Ethereum 4 Hour Chart
According to the 4-hour chart, Ethereum facing resistance and currently residing near $485 area. As per the current price action, if the bulls push the price further upside, ETH may reach $500 key level. So, if Ethereum reaches $500 area and rejects with an impulsive bearish candle close, the bears may regain momentum and decline towards $445 to $440 area in the coming days.
Furthermore, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line and the Tenkan line. The dynamic level may act as strong support to push the price upside. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process. However, the bears may regain momentum if the price can break below the dynamic level in the coming days.
ETH May Retrace downside
According to the daily chart, Ethereum facing resistance as the price created a double top. As per the current price action, if the price can have an impulsive bearish candle close below $500 to $490 area, the bears may push the price downward towards $445 to $440 area in the days ahead. So, if the price reaches $445 to $440 area and bounced higher with an impulsive daily bullish candle, the bulls may recover higher towards $490 to $500 area as a first target. The second target will be $545 to $550 area if the price can break above $490 to $500 area in the coming days.
Image: Ethereum Daily Chart
In addition, the dynamic level of 20 EMA is currently residing below the price. It may pull the price downside as a mean reversion. Also, the MACD lines are currently residing above the 0.00 level and created a bearish divergence. It indicates that bears may regain momentum for a while.
To conclude, after an extended period of volatility price has successfully hit September’s key level. A daily close will help to identify the definite momentum in the coming days.