The Ethereum price is down six percent versus the BTC at a time when the network is planning to upgrade and DeFi is being billed as revolutionary.
- The Ethereum price continues to range
- Support is at $320
- The resistance level is at $400
- CFTC chairman says DeFi is revolutionary
Ethereum price prediction: Current overview
The Ethereum price is in range mode, shifting from bullish to bearish despite general optimism from the trading community.
At the time of writing, the ETH price is trading at $380. It is slightly down from intra-day highs of $382 with the open and low coinciding at $368.
Overly, buyers have the upper hand. Behind are strong fundamental circling around Eth2 progress and comments by officials representing one of the most influential regulators in the United States.
According to developers working on Serenity actualization, the deposit contract date for the Beacon Chain mainnet is anytime from now. This suggests the team is ready for Eth2. The staking of ETH could begin by the end of the year.
Meanwhile, the chair of the United States Commodity Futures Trading Commission (CFTC) is positive on DeFi’s value proposition.
In his analysis, he thinks the solution is revolutionary and beneficial for the global economy especially during turbulence.
Ethereum price movement in the last 24 hours
The candlestick arrangement in the daily chart suggests weakness. Even with the community’s expectation of higher highs and a possible rally to over $500 in days ahead, bears could be in control in the immediate term. Already, ETH is down six percent versus the BTC.
Buyers couldn’t build momentum to overcome the strong resistance level of $400, allowing bulls to glide to $500.
Visible in the daily chart is a three-bar bearish reversal pattern as the middle BB provides the immediate support level.
As prices consolidate inside an $80 range with a buy-wall at $320, bulls remain in control since the present oscillation zone marks the 23.6 and 38.2 percent Fibonacci retracement levels of the March to August lift-off.
From this, the current correction isn’t in sync with historical retracements which can be deep, dropping to the 78.6 percent marks of a major trade range.
The failure of bulls to overcome $400 is enough for bears to possibly push prices below $320 to $200 in the medium term despite bullish fundamentals.
Ethereum price movement in the last hour
The Ethereum price is bullish in smaller time frames.
From the hourly chart, the ETH price is trading within a bear breakout pattern. The resistance trend line is providing support as bulls flow back, retesting the sell wall.
As it is, the short to the medium-term trajectory of the ETH price depends on whether bulls will loosen the current grip and blast above Oct 19 highs of around $390.
Losses below $360 may see sellers dump the ETH price towards $320 and $300.
Ethereum price prediction: conclusion
The Ethereum price is technically bullish from a top-down approach.
Backed by solid fundamentals–including the launch of the Beacon Chain mainnet in the next few weeks or days, ETH bulls may end up unwinding yesterday’s losses and push prices above $400.
On the flip side, odds of a postponement of Phase 0 to beyond Q1 2021 could trigger a correction below $300 towards $200 in a correction of the humongous price gains of March through to August 2020.