- Ethereum fails to hold above $390 as the entire cryptocurrency market retraces from weekly highs.
- ETH/USD is fundamentally ready for a breakout above $400 especially with the hashrate at all-time highs.
Ethereum has been rejected once again from the resistance range between $390 and $400. Bulls had recovered most of the lost ground after ETH dived to $370 earlier in the week. However, with the entire market in gains-trimming mode, Ether has been forced to join the party. At the time of writing, ETH/USD is trading at $381 because the tentative support area at $385 also gave into the increased selling activities.
Meanwhile, all technical levels signal the continuation of the bearish leg. The RSI is spiraling under the oversold and may soon hit the midline. If the downtrend remains uninterrupted, we can expect losses to hit hard at the support confirmed at $370.
The bearish grip is reinforced by the by Elliot Wave Oscillator printing an extended bearish session. In case the support at $370 fails to hold, ETH/USD could explore the rabbit hole towards $350.
Meanwhile, a reversal is likely to occur because buyers have not abandoned their hope for gains above $400. Besides, Ethereum is fundamentally ready to continue with the rally if not contain the price above $380. As discussed earlier, some traders are betting that Ethereum would hit $1,000 by the end of the year.
In addition, the hashrate of the network has hit all-time highs owing to the increased activities within the decentralized finance ecosystem. Therefore, if the technical picture improves, Ethereum could eventually spike not only above $400 but also past $500 in the medium term.
ETH/USD daily chart