Ethereum price analysis: ETH/USD recovers slightly after testing $400, but bears are not done yet
|- Ethereum is still very volatile towards the downside, the Bollinger Bands Show that a drop past $410 likely in the short-term.
- The buyers must garner the strength to cause a reverse trend above the low at $405 to prevent break down below $400.
Ethereum along with other cryptos in the market are seeking balance following the falling rollercoaster ride that carried the entire crypto market since Monday. Severe declines kicked off on July 31 where Ethereum plummeted from trading around $467 to lows of $405.6 recorded in the late session on Wednesday 1.
Although Ethereum price recovered from the lows below $410, its upside has been capped below $430 (the 23.6% Fib retracement level between the high leg of $511.79 and a low leg of $405.6). The weak support at $420 could not hold as the sellers expanded their reach on the day. Furthermore, the next support target at $417 failed too and ETH/USD is currently is changing at $414.24.
The current immediate supported is highlighted at $410, but a break below this level will see Ethereum break down further below yesterday’s lows at $405 and event test the critical support at $400.00. Applying Bollinger Bands shows that Ethereum is highly volatile and the current bearish trend is like to increase as the bands deviate further from the 21 simple moving average. In addition to that, the stochastic is confirming the bearish trend as it advances towards the oversold levels (below 30). On the flipside, Ethereum will have to reverse the trend and sustain trading above $420 and later advance towards the key resistance at $430. The ultimate resistance in the medium-term is at $450.
ETH/USD 1-hour chart
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