Ethereum price is down -3.3%, but its bounce above $ 390 is key to the bulls
While Ethereum (ETH) and most other altcoins have been trading lower in the past 48 hours, technical indicators suggest that the price of ETH is likely to recover above the main resistance area in the coming days.
According to on-chain data provider Glassnode, Ethereum’s realized price recently hit a high last seen in January 2019. According to the data, the value of the metric stands at $ 246 after a 21% increase since April. The realized price is a crucial indicator as it provides the average price of each Ether coin at the time it was last moved.
ETH / USD
The breakdown to the lows of $ 382 meant that the bulls lost momentum and a key support area failed to hold the gains around $ 405. The drop also meant that Ethereum risked further losses, a scenario that could prove detrimental to the bulls’ short-term plans if it were to repeat itself.
However, prices have since rebounded to the support area and keeping the key area bodes well for buyers. The recovery places prices above the 23.6% Fibonacci retracement level which marks the downside from a high of $ 411 to a low of $ 382 and highlights $ 395 as the immediate resistance level.
If the bulls manage to keep the bears at bay around this area, they could launch an attack on the next resistance-marked target at the 50% Fibonacci retracement level of the above swing.
A bullish scenario is forming on the daily chart against Ethereum which holds the $ 390 area. However, the MACD and RSI on the hourly chart suggest a struggle, which means that bulls must discover upward momentum on increasing buying pressure to push ETH / USD above the 100 – SMA. Achieving this goal will provide the necessary encouragement for the bulls to attempt to break through the wall at $ 420.
If the bulls keep bouncing off the trend line, a breakout is likely to occur with the ETH / USD exiting a long-term descending triangle.
On the flip side, a rejection of current price levels opens Ethereum to an immediate drop to a low of $ 385. A further withdrawal from the $ 385 support level risks putting the bears in command and opening an easy road to minimums of $ 368.