Ethereum (ETH) faces little resistance between $400-$470

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Ethereum (ETH) faces little resistance between $400-$470

By - min read
Updated 06 November 2020
An image of stacked ETH coins with rising market candles in the background

Ethereum’s price remains on course for another leg up after hitting highs of $408

ETH/USD rose sharply from lows of $385, breaking a major resistance line at $395 to briefly trade at a new peak around $408.

Although the asset traded as low as $395, keeping it above the critical support area mentioned below means that the bulls will retain the advantage and are set to attempt a breakout above $410.

ETH/USD technical analysis

From a technical perspective, ETH/USD is likely to fluctuate between key support and resistance areas around $400. However, fresh buying pressure will provide the impetus bulls need to push higher as ETH 2.0 inches even closer.

Bulls also face relatively little resistance above the $400 line, with the next rally likely to see Ethereum test the area around $425.

No hurdles for ETH/USD above $400

To retain the positive outlook, Ethereum needs to hold above $395 and aim for a higher close near $400. If the bullish momentum continues, a flip of the supply barrier around $400 into support would give bulls the base they need to push higher near term.

IntoTheBlock’s In/Out of the Money Around Price (IOMAP) metric suggests holding the ETH/USD price above the supply barrier-turned-support area is critical. As per the IOMAP chart below, there is a relatively clear path to $470 if the above scenario plays out in the coming days.

Ethereum’s IOMAP chart suggests bulls will have an easy path to $470 if they hold prices above $400. Source: @satoshilatino on Twitter.

If bulls maintain the upside momentum and ETH price prints a higher daily close, the positivity expected around the crypto market could help ETH/USD climb higher. Such an outlook would become even clearer if there is an influx of fresh buying pressure.

As noted above, this outcome could open up a clear path to $450 and then to $470.

ETH/USD 4-hour chart. Source: TradingView

Should the move to higher levels fail, several support areas are likely to prevent a massive dump in the short term.

The 50% Fib and 38.2% Fib retracement levels of the downswing from highs of $404 to $370 low provide support at $387 and $383. Further downsides should see the 23.6% Fib retracement level offer another cushion at $381.

The MACD on the 4-hour chart for the ETH/USD pair is also in the bullish territory but features a hidden bearish divergence. The RSI has also begun to slope and is currently printing 59.20.

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