Ethereum has become volatile and returned to a range of $395 to $360 area. However, will the ETH price break above $395 resistance level to continue the bullish trend? Gain insights into today’s ETH/USD technical analysis.
August 28, 2020, | AtoZ Markets – Ethereum’s price experienced a quick wave earlier this morning that sent it to highs of $395 before it confronted a huge inflow of selling pressure that made it about instantly opposite the entirety of its ongoing gains. Ethereum is currently trading around $387 area and trying to recover higher. After rejecting from $440 key resistance area, the bears pushed the price down quite impulsively. As per the current price action, the price may found support at the dynamic level of 20 EMA in the coming days.
ETH to Break Above $395 as Bulls Are Trying to Recover Further
ETH is currently residing near $387 area and trying to push upside. However, the dynamic level of 20 EMA is still residing above the price on the intraday chart, which may work as strong resistance in the process.
Image: Ethereum 4 Hour Chart
According to the 4-hour chart, Ethereum to break above and currently residing near $387 area. As per the current price action, if price can break above $395 area with an impulsive bullish candle close, the bullish trend may push the price towards $440 area in the coming days. Alternatively, if the price rejects $395 area with an impulsive bearish candle close, the bears may regain momentum and decline towards the $360 support area in the coming days.
In addition, the dynamic level of 20 EMA is currently residing near 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. However, the bulls may regain momentum if the price can break above the dynamic level in the coming days.
Ethereum Bullish Trend May Continue Further
According to the daily chart, Ethereum bullish trend may continue as it currently trade around $387 area. As per the current price action, if the price can break above $395 resistance level with an impulsive daily bullish candle close, the bulls may recover higher towards $440 area as a first target. The second target will be $500 area if the price breaks above $440 area in the days ahead.
Image: Ethereum Daily Chart
Furthermore, the dynamic level is currently residing below the price, which has acted as strong support several times. The dynamic level may push the price upside in the process. Also, the MACD lines are currently residing above the 0.00 level, which indicates that bulls are still in the market may strike higher.
To conclude, Ethereum has successfully retraced down towards the dynamic level of 20 EMA. A daily close is required to identify the definite momentum in the coming days.