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  • ETH/USD is currently trading at $394 after a significant dip towards $370.
  • The bulls were able to hold a crucial support level at around $370.

Ethereum has formed a notable support area between $362 and $370. Right before the crash, Ethereum was trading at $488.95. The 24% price crash took Ethereum as low as $370, right above a critical support area.

On-chain metrics showed that a large number of Ethereum coins were deposited into exchanges in the past 24 hours increasing the selling pressure. According to metrics from Chainalysis, the flow of Ethereum to fiat exchanges from normal exchanges on August 31 was notable indicating that traders were cashing out their Ethereum for fiat.

ETH/USD weekly chart

ETHUSD

Unfortunately, when looking at the bigger picture, it seems that Ethereum is condemned to retrace even further due to a solid sell signal from the TD sequential index. The last few times the TD indicator suggested to sell, Ethereum dropped at least 15% in the upcoming weeks.

The most likely target for another drop would be the weekly 12-EMA at $342 and in the worst-case scenario $300 and $283, where the 26-EMA is currently established

ETH/USD daily chart

ethusd

Things aren’t looking so bad here as the uptrend is technically not lost and the $362-370 was defended. Bulls are now fighting to climb above the 26-EMA at $400 which is also a significant psychological level. Both EMAs are still bullishly crossed and there isn’t a lot of resistance to the upside if buyers can manage to hold $370.

 

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