Ethereum price analysis: looking for a better entry price
13:34, 21 August 2020
Ethereum is starting to test under the $400 level, after the second-largest cryptocurrency by market capitalisation suffered a heavy upside rejection from the $447 level.
Ethereum price analysis shows that a steep decline towards the $300 level may present an opportunity to enter into the prevailing bullish trend.
ETH/USD medium-term price trend
The ETH/USD pair appears vulnerable to a strong technical correction, as buying interest above the $440 level starts to subside.
Ethereum technical analysis shows that bearish RSI price divergence is warning of a coming decline towards the $300 area.
The daily time frame shows that bearish price divergence on the RSI indicator is present until the $320 to $330 area.
Medium-term bulls may look to enter around the mentioned support areas in expectation of a counter rally back towards the $440 and, possibly, $500 levels.
Traders should note that daily price closes under the 23.6 percent Fibonacci retracement of the 2018 trading low to the all-time price high, around the $395 level, should encourage technical selling.
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ETH/USD short-term price trend
Ethereum technical analysis shows that the cryptocurrency has a short-term bullish bias while the price trades above the $320 level.
The one-hour time frame currently shows that a bullish inverted head-and-shoulders pattern has been invalidated, following multiple upside rejections from the $440 area.
According to technical analysis, the size of the invalidated inverted head-and-shoulders pattern indicates that the ETH/USD pair could drop towards the $360 area.
Traders should note that key short-term technical resistance above the $400 level is located at the $415 and $430 levels.
ETH/USD technical summary
Ethereum technical analysis shows that the ETH/USD pair could be preparing for a strong technical correction, following multiple upside rejections from the $440 area.