Ethereum has become impulsive and non-volatile after breaking above the last month’s high. Ethereum strikes over $420 resistance level as the dollar index dropped again because of the ongoing U.S. presidential election. ETH to recover further? What are the charts and technical indicators are saying? Read more to find further insights into today’s ETH/USD Technical Analysis.
November 6, 2020, | AtoZ Markets – Ethereum rose today morning during the Asian session against the U.S. Dollar. Ethereum’s price activity has been relatively dull starting late, which has been surprising considering the expansion of the ETH 2.0 deposit agreement and Bitcoin’s immense force. Ethereum is currently trading around $430 area and trying to retrace the downside. After bouncing from the dynamic level of 20 EMA, the bulls pushed the price quite aggressively and reached $440 area, according to the daily chart. As per the current price action, ETH may retrace towards the dynamic level of 20 EMA in the coming days.
Ethereum Strikes Over as the Dollar Index Deteriorated
ETH is currently residing near $430 area and trying to push lower. Moreover, the price also broke above the Bollinger Bands’ upper band on the intraday chart.
Image: Ethereum 4 Hour Chart
According to the 4-hour chart, Ethereum strikes over and currently trading around $430 area. As per the current scenario, the price may retrace downside towards $420 to $415 support level. So, if the price retraces downward towards $420 to $415 support area and bounces higher, the bulls may sustain the bullish pressure further towards $445 to $450 area in the days ahead.
In addition, the dynamic level of 20 EMA is currently residing below the price, which may pull the price down as a mean reversion. Besides, the Bollinger Bands middle band is also residing below the price. It may work as a confluence of the dynamic level in the process.
ETH May Reach September’s High
According to the daily chart, Ethereum strikes over as investors are optimistic. As per the current price action context, if the price can have an impulsive daily bullish candle close above $420 to $415 support area, the bulls may continue upwards towards $445 to $450 area as a first target. The second target will be $490 to $500 area if the price can break above $445 to $450 area in the coming days. Alternatively, if the price breaks below $420 to $415 support area with an impulsive bearish candle close, the bears may regain momentum and decline towards $380 to $370 area in the days ahead.
Image: Ethereum Daily Chart
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 a strong support to push the price upward. Also, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process.
To conclude, after an extended period of volatility, Ethereum able to broke above the psychological resistance level. A daily close will help to identify the definite momentum in the days ahead.