Hello traders! The second coin from the top by the total capitalization is a well known Ethereum. Currently, there is a long of interest for the Bitcoin and altcoins, of course including the ETH. Let’s have a look at the current price action of the ETH/USDT cryptocurrency pair.
First of all, the price continues to break above the downtrend trendline and produce higher highs and higher lows. This is a strong indication of the uptrend validity, where the price will move up with high probability as long as the support holds. Right now, Ethereum has reached a strong support area, which is confirmed by the 78.6% Fibonacci retracement at $382. This level has been rejected cleanly, along with the 200 Exponential Moving Average back on August 23.
The area between 78.6 and 88.6% Fibonacci retracement levels ($374-382) could be a very strong demand zone for the ETH/USDT. Considering the formation of the bullish divergence on the MACD, rejection of the support, and break above the downtrend trendline, price is getting ready to produce another wave to the upside.
The nearest resistance is located near previously established high, right at $447 level. This resistance is confirmed by two Fibs applied to the corrective waves down after trendlines were broken. Both of them, 261.8% and 361.8% are pointing to the same level, and this is $447. However, break above this level is also highly probable because the overall crypto market remains very bullish. If price will break above, the long term uptrend could be starting, resulting in a much stronger gain for the ETH.
Bias: Strongly bullish while above $374
Potential Support Zone: $380 – 400
Potential Targets: $447
Have a profitable trading!