- The 50-day SMA is limiting movement, delaying Ethereum’s anticipated rally to $400.
- Support at the 100 SMA is key to protecting the bullish outlook.
The smart contract token experienced an incredibly eventful week, starting with a ballistic rise to $395 and ending with a slump to $360. The price action to $400 was invalidated on Monday, opening the Pandora box. Support between $375 and $380 saw ETH take a hiatus from the downtrend. However, the final leg to $360 was triggered by the news regarding OKEx suspending withdrawals on Friday.
Ethereum could save the bullish outlook to $400
At the time of writing, ETH/USD is doddering at $367 after a shallow recovery from the short term support. Immediately above the price, the 50-day Simple Moving Average (SMA) is limiting movement. If this moving average is turned into support, Ether will crank the engines again for the journey to $400.
On the downside, the most important support is the 100-day SMA. Since September, the moving average has resulted in bullish reversals whenever tested. As long Ethereum holds above this zone, gains to $400 are likely to materialize.
ETH/USD price chart
IntoTheBlock’s IOMAP model reveals a challenging resistance zone ahead of Ethereum, from $369 to $380. Here, roughly 1.2 million addresses previously bought approximately 5.6 million ETH. Flipping this resistance into support is bound to boost Ethereum gradually towards the coveted $400.
On the downside, support is not as strong as the resistance. Therefore, bulls must ensure that the 100 SMA support described earlier is defended at all costs. Nonetheless, the model highlights a wide anchor running from $346 to $368.
Ethereum IOMAP chart
Looking at the other side of the picture
It is worth mentioning that the bullish outlook could end in the drains if the 100 SMA support is shattered. Similarly, the IOMAP shows that support is not as immense as the resistance ahead of Ether. In other words, if bears intensify the selling pressure, ETH may perhaps spiral to retest the primary support at $340.