• Ethereum recovers slightly from the dip to $335 but stalls under $350.
  • ETH/USD is looking forward to a breakout from the symmetrical triangle.

Ethereum explored levels below $320 twice in September. Multiple attempts were made to pull the crypto above $400, but little progress was made above $390. Moreover, for the past two weeks, the price has remained capped under $360. The smart contract token dived again on Thursday and Friday with losses mainly following in the footsteps of Bitcoin, which revisited the levels around $10,400. Ether found support at $335 before resuming the uptrend to $348 (current market value).

Venezuela launches an Ethereum-backed stock exchange

Venezuela, a country that is badly hit by sanctions from the United States and too high inflation, has made a significant step with the launch of a 'decentralized' stock exchange backed by Ethereum blockchain. The new national exchange is already listed in the nation's Official Gazette. The President, Nicholas Maduro, hopes that the development will aid in sidestepping sanctions imposed by the US.

The exchange, dubbed, BDVE will allow investors to buy and sell stocks, real estate and bonds on a digital platform. The assets are digitized using ERC-223 and ERC-721 token standards. Over the next 90 days, the exchange will be under trial, awaiting approval by regulators.

Ethereum could soon resume the uptrend to $380

Ethereum is trading at $348, as mentioned before. The price is dancing within a symmetrical triangle pattern. The pattern represents a period of consolidation heading to either a breakdown or breakout. It is essential to watch out for high volume movement to confirm a breakout. Simultaneously, symmetrical triangle patterns must be used in conjunction with other chart patterns and technical indicators.

ETH/USD 4-hour chart

ETH/USD price chart

At the moment, the Relative Strength Index (RSI) is beginning to shift towards the midline from a period of consolidation. A break above the average (50) would signal the return of volume and possibly the beginning the price action first to $360 and later to $380. The zone at $380 also houses the 50-day Simple Moving Average. On the downside, support is envisaged at the 100-day SMA around $340.

IntoTheBlock's IOMAP model shows exceptionally high resistance, running from $350 to $358. Previously, approximately 750,000 addresses bought nearly 14 million ETH in this range. While most buying pressure could suffer demise here, gains above this range could pave the way for price action to $380 and $400.

ETH IOMAP chart

ETH IOMAP chart

On the downside, support is observed between $338 and $348. Here, 806,000 addresses previously bought almost 3 million ETH. It is the most formidable support at the moment. Therefore, it calls for the bulls' attention to ensure the price does not continue with the breakdown to lower levels as Ethereum could easily fall to $320.

Looking at the other side of the fence

It is worth mentioning that if the resistance between $350 and $358 is not broken soon, Ethereum could be engulfed in selling pressure due to exhaustion from the bulls and the bears' return. Note that support between $338 and $348 is not robust enough to keep bears at bay, hence the lingering losses to $320.

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Three reasons why DOGE price will not be back above $0.17 anytime soon

Three reasons why DOGE price will not be back above $0.17 anytime soon

Dogecoin price is at the cusp of saying goodbye to $0.10 as the price is set to drop another leg lower in the coming week after DOGE price consolidated below that same $0.10. With such a move, losses would sum up to 55% of depreciation.

More Dogecoin news

Cardano price could go either way next week, but downtrend still rules

Cardano price could go either way next week, but downtrend still rules

Cardano price closes the week with another loss on the books. ADA price looks set to instead chose more downside as investors are turning away from cryptocurrencies. Expect another drop with at least a retest at $0.415.

More Cardano news

Why another 60% drop in SHIB price is inevitable

Why another 60% drop in SHIB price is inevitable

Shiba Inu price is too far gone from the significant pivotal level of $0.00001708 to make a strong comeback for now. Expect to see price action consolidate around current levels, slightly above $0.00001000, before another round of tail risks will come back to bite price action.

More Shiba Inu news

A weekly close below $0.50 spells another correction ahead for XRP price

A weekly close below $0.50 spells another correction ahead for XRP price

Ripple (XRP) price came close to a full recovery after the positive shift in sentiment on Friday, but as long as price action remains below $0.50, there is still no evidence of a fundamental turnaround in sentiment. Expect to see further downward pressure as several bearish pressures are not easing.

More Ripple news

Bitcoin: The last rebound before capitulation

Bitcoin: The last rebound before capitulation

Bitcoin is showing bullish signs in the lower time frames, which can be taken advantage of by traders in the next couple of days. But looking at BTC from the higher time frames suggests that the bottom is not in yet.

Read full analysis

BTC

ETH

XRP