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Ethereum price analysis: looking for a better entry price

By Nathan Batchelor

13:34, 21 August 2020

Ethereum price analysis

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.

Ethereum price analysis

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.

Ethereum price analysis

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.

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