Ethereum bears have regained momentum after hitting July 2018’s high. Ethereum price declined below $415 area. Is it the end of the bull run? Today’s ETH/USD technical analysis reveals.
August 21, 2020, | AtoZ Markets – Ethereum is currently trading around $405 area and trying to push downside. The price also broke below the dynamic level of 20 EMA on the intraday chart. As per the current price action, ETH bears may face strong support around $400 area in the coming days.
After a sharp fall, Ethereum discovered support near the $392 level against the US Dollar. ETH began a not too bad recuperation wave and moved back over the $400. There was a break over the $405 level. However, ether price is still beneath the 20 EMA. It managed to recuperate over the 23.6% Fibo retracement level of the descending move from the $447 swing high to $393 low.
Ethereum Price Declined After Reaching Psychological Resistance Level
ETH is currently residing near $405 area and trying to move downward. The price is also broke below the Kijun line and the Tenkan line on the intraday chart.
Image: Ethereum 4 Hour Chart
According to the 4-hour chart, Ethereum price declined and currently residing near $405 area. As per the current price action, if the price decline towards $400 area and breaks below it, the bears may push the price down towards $360 area in the coming days. Alternatively, if the price reaches $400 area and bounces higher, the bulls may regain momentum and recover higher towards $440 area in the days ahead.
In addition, the dynamic level of 20 EMA is currently residing above the price. Along with the Kijun line and the Tenkan line. The dynamic level may act as strong resistance to push the price down. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level.
ETH Bullish Trend May Sustain Further
According to the daily chart, Ethereum price declined may revert back to the mean. As per the current price action scenario, if the price can have an impulsive daily bearish candle close below $400 area, the bears may decline towards $360 area as a first target. The second target will be $300 area if the price breaks below $360 in the coming days.
Image: Ethereum Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing below the price. It may pull the price down as a mean reversion and also may work as strong support in the process. Moreover, the RSI line is currently residing below the overbought level 70 and gradually sloping downside. It indicates that bears may continue the bearish bias further in the days ahead.
To conclude, after an aggressive bullish momentum, Ethereum price is trying to retrace downside. A daily close is required to identify the definite momentum in the coming days.