Ethereum Price Forecast: ETH bulls drained after hitting a barrier at $360

  • Ethereum recovered significantly from last week’s losses to $310 but hit a snag at $360.
  • ETH/USD is in for a challenging ride to $400; IntoTheBlock’s IOMAP reveals several resistance zones.
  • ETH/USD is sitting on a healthy support range running from $346 to $357, according to the IOMAP model.

Ethereum recently revisited support at $310. The smart contracts token bounced back upwards despite calls for losses as far as $250. The weekend session has been yielding for Ethereum because buyers managed to bring down the resistance at $350. At the time of writing, Ether is doddering at $357 amid a building bearish momentum.

Ethereum 2.0 in the final stages ahead of the anticipated launch

The much-awaited Ethereum 2.0 upgrade is in its final lap before the grand launch. In a recent interview with CoinDesk, Raul Jordan, Prysmatic Labs lead developer, said that the protocol is ready, but final touches are still ongoing. In other words, developers are concentrating on providing good documentation as well as a good user experience.

At that time, it’s all hands on deck to just have good documentation, good user experience, fix up security holes [and] basically prepare for launch. That’s where we are today if all remains on track.

Ethereum's journey to $400 is an uphill task

Analysts and cryptocurrency enthusiasts believe that the release of ETH 2.0 will act as a significant boost to Ethereum in terms of growth. Trading above $500 remains the most realistic prediction, but when you consider the magnitude and the impact of the new protocol, eyes start to open up towards $1,000.

At the time of writing, Ether is teetering at $357. The momentum appears to have stalled under $360 despite the breakout above the descending triangle pattern. The Relative Strength Index (RSI) in the 4-hour range moves horizontally at the midline, suggesting that consolidation will take precedence in the near term.

Ethereum bulls must take down the hurdle at $360 as soon as possible to open the way for gains heading to $400. However, more resistance is envisaged at $380, the 50 Simple Moving Average (SMA) in the 4-hour timeframe and $400.

ETH/USD 4-hour chart

ETH/USD price chart

Looking at the hourly chart, the Bollinger Bands highlight the possibility of consolidation taking precedence in the coming sessions. As the bands begin to squeeze, volatility will start to mount ahead of a breakout. The middle curve is in line to offer support following the temporal rejection at $360.

The Moving Average Convergence Divergence (MACD) in the same hourly range shows that Ethereum is in the bulls' hands. The MACD is settling in the positive region and a bullish divergence above it emphasizes that buyers are in the driver’s seat.

ETH/USD 1-hour chart

ETH/USD price chart

IntoTheBlock’s IOMAP model confirms that Ethereum has the potential to hit highs above $400. However, the breakout is bound to face several challenging hurdles before materializing. For instance, the most vigorous resistance lies between $358 and $369. Here, nearly 515,000 addresses previously bought 2.88 million Ether. The resistance of almost the same magnitude lies between $369 and $390.

Ethereum IOMAP chart

ETH/USD price chart

On the flip side, the smart contracts giant sits on an area with immense support, as highlighted by the IOMAP model between $346 and $357. In this range, 603,230 addresses previously purchased 10.56 million ETH. Ethereum must hold above this zone; otherwise, losses below it could extend to $300.

Consequently, investors are holding dearly to their ETH ahead of the new protocol launch. According to Santiment, a leading on-chain analytics platform, the amount of ETH held by top-non exchange addresses hit 12.58 million, the highest since July 2016. Note that, Ethereum started a rally almost a year later in 2017, where it hit an all-time high of $1,300 in January 2018. As these top-non exchange addresses increase their holdings, there is a growing potential that Ethereum will soon start to rally.

Ethereum held by top non-exchange addresses chart

ETH/USD price chart

Looking at the other side of the picture

Ethereum is indeed nurturing a bullish momentum towards $400. The technical analysis highlighted resistance at $360. IntoTheBlock suggests that the path to $400 will be challenging mainly because of the hurdles in the ranges; $358 - $369, $369 - $380 and $380 - $390. If rejection at $360 fails to hold above the Bollinger Band middle curve (1-hour), Ethereum could extend the bearish leg to $300, mostly if support between $346 and $357 is shattered.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Three reasons why the cryptocurrency market could be about to suffer one of the nastiest corrections in years

The cryptocurrency market seems to be stronger than ever and has seen a $250 billion increase in its market capitalization since the beginning of October. 

More Cryptocurrencies News

Yearn.Finance Price Forecast: YFI’s next buying opportunity may come at $18,000

YFI had an astounding 290% bull rally that started on November 5 and peaked on November 20 at $29,890. The digital asset seems to be under consolidation, and many indicators are turning bearish in the past ...

More News

XTZ attempts to breakout but technicals point to a retracement first

Tezos is up by 45% in the past week as it was one of the few cryptos left to go up. Bulls face a critical resistance level at $3, and some technical indicators suggest that investors should sell in ...

More Tezos News

Traders are buying XRP like crazy ahead of Flare Network’s airdrop

Ripple's XRP is changing hands at $0.64, having gained over 6% on a day-to-day basis and over 110% on a weekly basis. The coin hit the multi-year high at $0.7824 on November 24 but failed to hold the ground ...

More Ripple News


Bitcoin Weekly Forecast: BTC makes new yearly highs while its network activity looks worrisome

Bitcoin has lived through the best week since February 2018. The pioneer digital currency price gained over $2,000 in less than seven days. The bullish momentum allowed it to reach a new multi-year high of nearly $18,800, marking November 2020 one of the strongest bullish months ever. 

Read the weekly forecast