The Ethereum price action is gradually running out of steam after hitting a two-year high by reaching $445 just recently. Can Ethereum confirm the $400 price level as the new support before bulls step on the gas?
During the weekend, the price of Ethereum dropped under the resistance level at $438, before hitting the lows of $420 earlier on August 16. The decrease in Ethereum price has been supplemented by a minor drop in volume over the weekend, in comparison to the volume last week.
Ethereum price short-term forecast
Moving forward, if the bulls can rescind at the $420 price level, the initial plane of support to resistance rests at $438. Above this level, resistance is likely to occur at $445, the current ETH price high of 2020. This resistance level will then be followed by $450, $465, $490 and then $500 Fibonacci extensions.
On the contrary, if the bears overpower the bulls, the support can be realized at $410, $400 and $380. Below these price levels, support rests at last year’s high of $364.
At the beginning of the month, the RSI of ETH declined from exceedingly overbought circumstances. Currently, the RSI on the ETH/USD pair is indicating downwards, signaling that the bullish momentum is dying off. Regardless, as long as ETH/USD maintains above the mid-plane, the buyers are in command of the market.
ETH/BTC Pair analysis
Ethereum succeeded to thrust higher against Bitcoin on Aug.14, breaking past lat year’s March high of 0.0371 BTC. Nevertheless, similar to the ETH/USD pair, ETH/BTC was unable to maintain and dropped to the ensuing support level of 0.0356 BTC.
Similarly, the last price drop was followed by a slight decrease in the trading volume of the Ethereum during the weekend.
ETH/BTC short term forecast
In regards to the future, if bears thrust below, the initial level of support is likely to be at 0.0347 BTC. This support level is reinforced by a steep inclined trend line that has been in progress since mid-last month. Below this trend line, further support rests at 0.0337 BTC and 0.04 BTC.
On the contrary, if bears can push past March last year’s high of 0.0361 BTC again, resistance is likely to be realized at 0.0371 BTC, 0.038 BTC and 0.04 BTC.