Ethereum has become volatile but still maintain the price above psychological support. Ethereum sustains bullish pressure above $360 area. Bulls 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.
October 16, 2020, | AtoZ Markets – Unlike Bitcoin, Ethereum presently can’t seem to set a higher high in 2020 over the earlier year’s pinnacle; Ethereum’s higher high is a significant sign that another upside bias is brewing in the cryptocurrency market. Ethereum is currently trading around $375 area and trying to push upside. The price found support on the dynamic level of 20 EMA on the intraday chart. As per the current price action, the price may face strong resistance at the falling wedge in the coming days.
Ethereum Sustains Bullish as Investors Are Very Much Optimistic
Ethereum is currently trading around $375 area and trying to recover higher. Moreover, the price also may find support on the Kijun line and the Tenkan line in the coming days.
Image: Ethereum 4 Hour Chart
According to the 4-hour chart, Ethereum sustains bullish and currently residing near $375 area. As per the current price action, if the price can break above the falling wedge’s resistance level, the bulls may recover higher towards $395 to $400 area in the coming days. Alternatively, if the price rejects the falling wedge’s resistance and had an impulsive bearish close below $370 to $367 support area, the bears may regain momentum and decline towards $360 to $355 area in the process.
In addition, the dynamic level of 20 EMA is currently residing below the price, along with the Tenkan line. The dynamic level may act as a strong support to push the price upwards. Besides, the Tenkan line may work as a confluence of the dynamic level. Moreover, the price may strike higher if ETH can break above the Kijun line in the days ahead.
ETH May Reach September’s High
According to the daily chart, Ethereum sustains bullish as the bulls had a strong bullish daily pin bar above $370 to $367 support. As per the current price action, if the price can break above the pin bar’s high with an impulsive daily bullish candle close, the bulls may sustain the bullish pressure towards $395 to $400 area as a first target. The second target will be $430 to $440 area if the price can break above $395 to $400 resistance area in the process.
Image: Ethereum Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing below the price, which may hold the price as strong support. Also, the MACD lines are currently residing near the 0.00 level after having a bullish intersection. It indicates that bulls may continue the bullish pressure further in the days ahead.
To conclude, after breaking above $367 to $370 resistance area, the price has successfully retraced lower and had a bullish pin bar close. A daily close is required to identify the definite momentum in the coming days.