- Ethereum bulls are struggling to gain momentum towards $ 400 after another drop to $ 370.
- ETH / USD to favor consolidation above $ 380 based on the trend of the RSI at the midline.
Ethereum’s price gets used to trading below $ 400 following another unsuccessful attempt to hold above $ 400. A lower reversal from the weekly high traded at $ 411 on Monday saw Ether plunge to $ 369. The zone of buyer congestion between $ 360 and $ 380 proved to be useful as discussed on Tuesday.
During this time, ETH / USD rallied slightly and rose above $ 380. He is flirting with $ 385 amid the bulls push for highs above $ 390. According to the RSI, consolidation should take it from here.
The trend indicator continued to explore lower levels starting at 90 (reached in early August). This shows that Ethereum’s downtrend is getting stronger and the chances of keeping the price above $ 400 are getting smarter.
While consolidation is expected at $ 385 while still holding above support at $ 380, the plummeting MACD suggests that Ethereum is not done with the decline. Going back to $ 370 and even $ 360 of support levels cannot be ruled out. However, sharp and agonizing declines are unlikely due to the fact that the 50-day SMA further extends the gap above the longer-term 100 SMA.
Obviously, gains above $ 390 would open the door to action above $ 400. Still, keeping the price above $ 400 is the only way to guarantee the next $ 500 rally.