- Ethereum bulls are having a hard time building momentum towards $400 following another dip to $370.
- ETH/USD to favor consolidation above $380 based on the trend of the RSI at the midline.
Ethereum price is getting accustomed to trading under $400 following another failed attempt to hold above $400. A downward reversal from the weekly high traded at $411 on Monday has seen Ether plunge to $369. The buyer congestion zone between $360 and $380 came in handy as discussed on Tuesday.
Meanwhile, ETH/USD has recovered slightly and stepped above $380. It’s flirting with $385 amid the push by the bulls for highs above $390. Consolidation is expected to take it from here according to the RSI.
The trend indicator has continued to explore lower levels from 90 (achieved at the beginning of August). This shows that Ethereum’s downtrend is becoming stronger and the chances of sustaining the price above $400 are getting slimmer.
Although consolidation is expected at $385 while holding above the support at $380, the free-falling MACD suggests that Ethereum is not done with the downside. Return to $370 and even $360 support levels cannot be ruled out. However, sharp and nerve shattering declines are unlikely owing to the fact that the 50-day SMA is still extending the gap above the longer term 100 SMA.
It is apparent that gains above $390 would open the door for action beyond $400. Nonetheless, sustaining the price above $400 is the only way to guarantee the next rally eyeing $500.
ETH/USD daily chart
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