2020-10-21 23:02 |
Ethereum (ETH) has found strong support around $300 but the price is still not able to stabilize above $400 resistance. The price of Ethereum is still far away from the ETH price predictions but if the price jumps again above $400 that could be a very good opportunity for the short term traders.
Fundamental analysis: The development of applications interacting with this network has never been strongerEthereum can be a very good investment option according to estimates and some predictions say that this cryptocurrency could be above $1 000 in the next several years. Beyond a tradeable cryptocurrency, Ethereum is a decentralized platform that runs smart contracts.
This cryptocurrency is also used by application developers to pay services and transaction fees on the Ethereum network. Ethereum network is constantly adding new clients and the development of applications interacting with this network has never been stronger.
The rise of Decentralized Finance (DeFi) is gaining momentum and investors in this cryptocurrency are able to gain income from their assets through DeFi tools. The main trend of this cryptocurrency remains neutral-bullish and Ethereum (ETH) is eying to $400 as the uptrend continues.
It is also important to mention that the price of Ethereum is correlated with the price of Bitcoin and investors in this cryptocurrency should also have Bitcoin on their “watch list”. The price of Bitcoin is very close to $12 000 resistance and some analysts believe that BTC may start trading higher in the upcoming days.
This is positive news for the price of Ethereum and upcoming days could be very significant for the future price of this cryptocurrency.
Technical analysis: Ethereum has stabilized above the important support level Data source: tradingview.comOn this chart, I marked important resistance and support levels. The important support levels are $350 and $300, $400 and $450 represent the resistance levels.
As long the price is above this trend line this cryptocurrency is in the “buy” zone and there is no indication of the trend reversal. If the price falls on the trend line and if we get a “bullish” confirmation candle it would be a very good entry point for short-term traders who are trading with “stop-loss” and “take profit” orders.
If the price jumps above $400 it would be a signal to buy Ethereum and we have the open way to $430. There are also some obvious risks when it comes to buying Ethereum (ETH) and investors should have in mind that the price could also fall in the upcoming period.
The trend line represents a very strong support level, if the price breaks this trend line it would be a very strong “sell” signal and we have an open way to $300.
SummaryThe future actually looks bright for Ethereum but investors should have in mind that Ethereum isn’t the only privacy coin competing for market share and some other cryptocurrencies could potentially limit the adoption of Ethereum. The price of Ethereum extended its correction from the recent highs above $480, registered in the first week of September. Despite this, there is no reason to panic and as long the price of Ethereum is above $300 this cryptocurrency is not in the “sell” zone.
The post Up or down? Ethereum (ETH) price prediction for October appeared first on Invezz.
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