Ethereum (ETH) suffers rejection and drops to key support
Ethereum’s price is moving in the $ 390 support area.
The next areas of support and resistance can be found at $ 365 and $ 420
The technical indicators in the daily timescale have started to turn bearish.
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The price of Ethereum (ETH) has struggled and retraced dramatically from its steep drop in early September.
The course is currently at a significant support area. If he loses the latter, that would go a long way in confirming a downward trend.
Ethereum struggles to keep its support
ETH’s price peaked at $ 489.57 on September 1, but then fell significantly the next day. It continued to decline, reaching a low of $ 311.4 on September 5. Since then, the price has been rising.
On October 22, however, he was rejected by the $ 420 area. This area corresponds to the Fibonacci level 0.618 of the entire decline, and it is now expected to have resistance.
The price is currently moving in the area of $ 390, and which seems to be able to serve as support. That said, ETH is very close to going under the latter. In this case, the next support area would be at $ 365.
Cryptocurrency trader @CryptoNewton says the price of ETH could end up breaking above its current ascending channel. Likewise, he pointed to a rally that could push prices up to new all-time highs.
Beyond the bearish aspect of technical indicators, it seems that the price is moving within an ascending parallel channel. Knowing that slow, jerky movement within parallel lines is often corrective , the upside may be a correction. The latter could then lead to a decline to new lows, rather than being a movement causing new highs as highlighted in the tweet.
In this case, the course has completed a corrective structure in ABC (in blue) and should soon go under the channel. A rally above the top of Wave C, at $ 420.74, rendered this scenario invalid.