Ethereum Price Forecast: ETH Thrusts Through $400 Resistance as $500 Calls

October 23rd, 2020

ETH-smart-contracts-gas-fee-DeFi The smart contract cryptocurrency has been on an upward roll since late September. Support embraced at $320 played a key role in the progress, especially at the beginning of October. As covered, Ether struggled with the seller congestion at $360 and $390, before making the final leap for $400.

The trading in the last few days has been particularly yielding not only for Ethereum but also for Bitcoin. The flagship cryptocurrency smashed two key hurdles, $12,000 and $13,000. Ripple is trying to catch up with the top two but the seller congestion at $0.26 is a hard nut to crack.

At the time of writing, the smart contract giant is exchanging hands at $414, following a persuasive move past $400. Trading above the descending triangle resistance is likely to have given the bulls a significant boost.

However, the selling pressure at $420 is currently the immediate barrier. In addition, the volume has gone down significantly, bringing volatility to a near low. It is essential to keep in mind that despite the resistance, buyers are still in control as highlighted by the Relative Strength Index (RSI).

ETH/USD daily chart

BTC/USD price chart
BTC/USD price chart by Tradingview

Ethereum is not overbought yet, but it could soon be. This means that there is still room for growth in the near term. The Moving Average Convergence Divergence (MACD) also emphasizes that bulls have the upper hand.

In other words, ETH/USD could push further upwards, first settling above $420 and extending the bullish action towards $500. Note that the selling pressure at $440 and $480, however subtle may delay the anticipated spike to $500.

Ethereum Intraday Levels

Spot rate: $414

Relative change: -1

Relative change: -0.17%

Trend: Bullish bias

Volatility: High

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