Ethereum Price Prediction: Rejections at key resistance forces ETH to consolidate – Confluence Detector


  • The confluence detector shows a lack of healthy support levels on the downside.
  • The whales have been accumulating their holdings, which is a positive sign.

Between September 2 and September 5, Ethereum dropped from $475.85 to $335. Since then, the smart contract giant went through a consolidation period before finding support at the 100-day SMA and bouncing up from $342 to $389 between October 7 and October 12. Since then, the buyers seemed to have lost steam near the $385 resistance line and has entered another consolidation period.

ETH/USD daily chart

ETH/USD daily chart

The MACD shows decreasing bullish momentum, which is a very worrying sign. Plus, to give further credence to our bearish outlook, the daily confluence detector shows a clear of strong support on the downside. The 50-day SMA, 100-day SMA and 200-day SMA can act as sound walls against the price drop; however, they may not be able to absorb a sudden spike in selling pressure. As per the daily confluence detector, a severe downturn can cause the price to plummet down to the 200-day SMA ($280).

ETH confluence detector

fxsoriginal

The Flipside: Can the bulls take over?

The bulls will need to break above the $385 resistance line before it continues to inflict heavy damage on the price. Even if they manage to break past that, there is another strong resistance at $390, limiting any upward movement. However, if they do manage to break past these two obstacles, they can take the price up to $425. 

The bulls should also be encouraged by the action of the whales. As per Santiment’s holders distribution, it looks like the whales have opted to strengthen their holdings instead of dumping their coins. As per the metric, the number of addresses holding 10,000-100,000 tokens went up from 961 to 971 between October 8 and 16.

ETH holders distribution

fxsoriginal

Key price levels to watch

As per the daily confluence detector and repeated rejections at $385, the lack of healthy support should give the bears enough firepower to push the price down to the 100-day SMA. ($354.85), if the 50-day SMA doesn't hold strong. Further selling pressure will drop the price down to the 200-day SMA ($280).

To reverse this, the buyers will need to overcome two immediate resistance levels at $385 and $390 to have a positive breakout from the latest consolidation period. If this does happen, ETH should be able to reach up to $425.
 

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

Dogecoin: DOGE on the verge of a 75% lift-off

Dogecoin price breaks out of a bull flag pattern after surging 20%. DOGE could surge 75% to $0.095 if it bounces from the 50% Fibonacci retracement level at $0.055. A bearish outcome could evolve if the price re-enters the “flag” and starts consolidation.

More Dogecoin News

Bitcoin price ready for another upswing as the Fed publishes new preconditions for a digital dollar

The Fed will be looking for stakeholder interest and buy-in to support the launch of a CBDC. The US is still a long way to develop a digital dollar because many structures are not yet in place.

More Bitcoin news

Solana: SOL could take a breather and pullback 30% after a 600% bull rally

SOL price has been on an uptrend since Jan 22 with only minor corrections. SOL was surprisingly unbothered during the market crash on Feb 22 and 23, as it dropped by a mere 13%.

More cryptocurrencies news

Ethereum: ETH building overhead pressure threatens losses to $1,200

Ethereum’s recovery stalls at $1,700, opening the door to the ongoing bearish pressure. The IOMAP reveals the presence of intense selling pressure ahead of Ether.

More Ethereum news

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: BTC journey to $100,000 might be easier than expected

This past week has been extremely beneficial for Bitcoin which jumped by 30% since Monday 8. Several positive announcements, especially Tesla purchasing $1.5 billion worth of the digital asset propelled the flagship cryptocurrency to new highs.

Read the weekly forecast

BTC

ETH

XRP