Ethereum has become impulsive and broke above $400 psychological area. Will Ethereum bullish trend sustain towards $500 key resistance area? What are the charts and technical indicators are saying? Read more to find further insights into today’s ETH/USD Technical Analysis.
August 14, 2020, | AtoZ Markets – Ethereum is currently trading around $420 area and trying to climb higher. After breaking above $400 resistance level, the bulls pushed the price upside impulsively and hit July 2018’s high. ETH has climbed over 8% and broke above the key $400 barrier against the U.S. Dollar. Ethereum price traded into a new two years high, which is around $430 area, and it seems to continue further. As per the current price action, Ethereum bullish trend may retrace towards the dynamic level in the coming days.
Ethereum Bullish Trend May Sustain Further as the Investors Are Optimistic
ETH is currently residing near $420 area and trying to recover upside. After rejecting $430 resistance level, the price has become volatile and corrective on the intraday chart.
Image: Ethereum 4 Hour Chart
According to the 4-hour chart, Ethereum is currently trading around $420 area and may sustain the bullish trend. As per the current price action, if the price can have a 4-hour bearish candle close below $430 area, the bears may regain momentum and push the price down towards $400 support level. Alternatively, if the price breaks above $430 resistance level, the bulls may continue the bullish bias towards $450 area in the days ahead.
In addition, 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 pull the price down as a mean reversion. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level.
ETH May Revert Back to the Mean
According to the daily chart, Ethereum bullish trend is currently facing resistance around $430 area. After an extended period of volatility below $400 resistance level, the bulls were able to break above with a daily bullish candle. As per the current price scenario, if the price can break above $430 area with an impulsive daily bullish candle close, the bulls may recover higher towards $500 area in the coming days.
Image: Ethereum Daily Chart
In contrast, if the price rejects $430 area with a bearish candle close, the bears may regain momentum and decline towards $400 area as a first target. The second target will be $350 area if the price can break below $400 in the coming days.
Furthermore, the dynamic level of 20 EMA is currently residing far below the price. So, the dynamic level may pull the price down as a mean reversion. Along with, the Bollinger Bands middle band is also currently residing below the price. It may work as a confluence of the dynamic level. Also, the MACD lines are currently residing above 0.00 level and may have a bearish cross over. It indicates that bears may regain momentum in the process.
To conclude, Ethereum bulls have pushed the price higher aggressively with two bullish gaps in the rows, which needs to be filled up. A daily close is required to identify the definite momentum in the coming days.