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One Thing Holds Back Ethereum For Another Rally: Price Analysis

09/27/2020

Ethereum is primed for another price rally above $360 but only one thing holds back the second biggest cryptocurrency, as we are about to read in the latest Ethereum price news.

Ethereum is recovering well above the $350 resistance zone against the US dollar and the price will likely speed up further if it settles above the $362 level and the 100 SMA. The ETH price started a decent recovery wave from the $310 and the $315 support zone against the US Dollar. The price is trending above the $350 resistance level with a key rising channel that is forming close to the support of $352 on the 4-hour charts of the pair. The pair will continue higher if it settles above this price range of $362.

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Ethereum price trades above $350. Source TradingView.com

Over the past week, Ethereum remained stable within the $300 support zone against the US dollar. The ETH price traded as low as $313 and it started a steady recovery wave above the $330 resistance. The ETH price was able to make a strong recovery above $335 and $40 levels as the price gained pace after a break above the connecting bearish trend line with the resistance close to the $430 level on the 4-hour charts. There was also a break above the 50% Fib retracement level from the downward movement of $394 to $313. ETH is now trading above the $350 resistance level and the 100 simple moving average but one thing holds back the coin to rise further.

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ETH 24-hour Price Chart (Source: Coingecko)

Ethereum is facing strong resistance near the $362 level but it seems like the 61% fib retracement level of the downward move at $394 high to the $31 low acts as a strong resistance. There’s also a key rising channel that is forming with the support close to the $352 level. The clear break above the channel resistance and this level could open the doors for another increase. The next major hurdle is close to the $375 level which the price could rally to $400.

If Ethereum fails to clear the $362 resistance zone, it could start another downside correction with initial support close to the $352 level. If there’s a downside break below the channel support of $352 there’s a risk of a drop towards the $345 zone. Further losses could negate the current bullish wave and the coin could go back to the $315 level. The technical indicators for the pair are in the bullish zone.