Ethereum’s price dips as bulls risk losing upward momentum

October 20, 2020
By Benson Toti

ETH/USD price needs to clear resistance at $385 to maintain a positive outlook

Ethereum’s price is at risk of dipping below $375, although the short term outlook features a potential recovery that could see its value touch levels above $400.

After what looked like a meaningful upside that saw the price of Ethereum against the US dollar climb to highs of $384.5 yesterday, today’s action features a series of lower trades that threaten to sink the price further ahead of the launch of ETH 2.0.

The leading altcoin’s price is also dipping against Bitcoin, with last week having been spent largely mirroring the top cryptocurrency’s action. ETH gained just under 1.0% against BTC this past week, but it’s down 2.53% against the top crypto at the time of writing.

Ethereum price outlook

Ethereum had steadily climbed to highs of $384 against the US Dollar on Monday. However, it’s been correcting lower amid increased downward pressure. ETH/USD is currently trading above the SMA100 on the 1 – hour chart, but with a bearish outlook forming around the $374 high.

This price level is important to bulls as it means they retain the chance of revisiting the important price levels of $385 and $400.

At the time of writing, the ETH/USD price is hugging the lower curve of the swing high from $373 to $384. A break above the trend line to the $380 level will confirm the support at the crucial 50% Fibonacci retracement level.

While the $385 line provides a massive hurdle, Ethereum could do with the improved sentiment above $370 near term.

ETH/USD price 1-hour chart. Source: TradingView

On – chain analytics platform Santiment says that the Ethereum price might benefit from the activities of whales.

As per the platform, “Ethereum’s top 10 whale exchange addresses have continued swapping their funds to non-exchange wallets, & moving holdings at an impressive rate“.

“The 20.5% decrease in tokens on exchanges the past 2 months indicates price confidence by top Ethereum holders,” Santiment tweeted.

ETH/USD might also need to track movements for BTC/USD, which means picking up a nice upside in the later sessions. As well, bulls will watch out for movements across the stock market where the outcome of the US stimulus talks and Election will likely play a big role in where markets trend short term

If the bears retake the initiative and push prices down from around the $385 resistance level, bulls will need to defend gains at the immediate support line around $378. A break below this line means bears could attempt to reach targets around $365.