- Ethereum tests the $390 high but unable to sustain.
- Ethereum continues to follow Bitcoin.
- Binance is giving Ethereum a good competition with the new DeFi platform launch.
- Ethereum sentiment is shaky unlike Bitcoin.
The Ethereum price line tested the $390 resistance level on the 15th of September while following Bitcoin’s steps. Binance‘s new DeFi yield farming platform is taking a shot at Ethereum which is likely keeping the traders in a mixed sentiment. Crypto analysts on Trading View believe that the ETH price will rise past the $400 level soon.
1-Day Ethereum price analysis
The ETH price was observed at $366.72 US Dollars on Bitstamp at the time of writing. The cryptocurrency traded at a high of $381.82 US Dollars at 02:35 GMT, on the 15th of September. At the day’s lowest, the cryptocurrency was priced at $362.76. At the time of writing, the 20-Day Exponential Moving Average (20EMA) was seen at $367.81, while the 50-Day Moving Average (50MA) was observed at $367.71 at the same time.
The Relative Strength Index (RSI) rose to a day’s high of 85.59 near 11:00 GMT. This means that the cryptocurrency was overbought at that time. Near 15:00 GMT, the technical indicator fell as low as 12.69. Such a low for the RSI index depicts that the coin was extremely oversold during that time.
While the new yield farming platform by Binance could allow a bigger audience to access the DeFi principles, it still does not seem to compare with Ethereum. This is because Ethereum is a decentralized network and DeFi on Ethereum is much larger than that on Binance. The transaction volumes on Binance Smart Chain are lesser than one-fifth of those on Ethereum. This is also why Binance controls the ecosystem more easily.
What’s next for Ethereum’s price?
The Trading View analyst Trading Axis believes that the ETH price line will rise towards the $480 mark soon.
The crypto analyst drew an ascending parallel channel which was entered by ETH price during February 2020. The cryptocurrency has been trading close to the lower boundary of the ascending channel. ETH price stayed close to the trend line support until August 2020, when it turned bullish and moved past the $400 mark.
The analyst believes that the cryptocurrency will close this ascending parallel channel with a target price of $480.73 US Dollars. The stop-loss order for this trade was placed at $241.22.
Will ETH price retest the $390 resistance?
The Trading View analyst Atlas Trades stated that the ETH price has formed a similar trading pattern to that of the cryptocurrency king Bitcoin. The analyst believes that Ethereum will see a pullback before retesting the $390 resistance level.
The cryptocurrency gradually moved up in the parallel channel after it fell below the $390 resistance on the 4th of September. The ETH price has been varying near the $390 resistance for the past week, while it is expected to retest the resistance after showing a brief pullback. The $320 support level is important for ETH price to hold. If the cryptocurrency breaks below this support, it will turn bearish and fall below the $300 mark. If ETH price breaks the $390 level, it is expected to turn bullish and go up.