Ethereum is still on a strong uptrend ever since the recovery of the US stock market. The coming few days will be crucial in determining the defining path of the price of Ethereum and most cryptocurrencies. The US elections play a big role across all markets, as traders usually watch out for such important events and base their strategies accordingly.
Ethereum Technical Analysis
Ever since last week, Ether’s price adjusted from a high of USD 420 and reached a low of USD 370. The RSI is moving slightly downwards to oversold territories (currently at 45). In fact, the price is retracing back to the yellow uptrend line (fig.1) which we’ve been mentioning in our previous articles, and where we clearly predicted such price-action.
Important Levels to consider
Plotting the Fibonacci Retracements from the highs and lows of last week (fig.2), we can clearly see the oversold level of 34 RSI at a price of USD 370. Over the short term, prices should adjust back to USD 390 at the 50% Fib level. If successful, the price will continue on its uptrend trajectory.
If the price fails to break through the 38.2% Fib level (USD 386), then prices are most likely to fall further down the yellow uptrend line.
The price of Ethereum has been in a perfect downtrend channel (fig.3). The potential scenarios would be a continuation of a price drop to reach the yellow line, then an inflection in prices to go back to the USD 400 psychological level. If this case happens, we might reach a USD 500 target level in the medium term.
Cryptocurrencies at a glance
In the last 24 hours, the top 10 cryptocurrencies by market capitalization are mostly in the red:
- Bitcoin (BTC) : + 0.27%
- Ether (ETH) : – 1.97%
- Tether (USDT) : 0%
- Ripple (XRP) : – 1.94%
- Bitcoin Cash (BCH) : – 7.29%
- Chainlink (LINK) : – 8.24%
- Binance Coin (BNB) : – 7.41%
- Litecoin (LTC) : – 3.48%
- Polkadot (DOT) : – 3.16%
- USD Coin (USDC) : + 0.05%
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