The price of Ethereum (ETH) has weakened from $480 below $320 in less than three weeks and the current price stands around $365. The price of Ethereum is still far away from the ETH price predictions but if the price jumps again above $400 that could be a very good opportunity for the short term traders.
Fundamental analysis: Fundamentals of this cryptocurrency are steadily improving
Beyond a tradeable cryptocurrency, Ethereum is a decentralized platform that runs smart contracts. This cryptocurrency is also used by application developers to pay services and transaction fees on the Ethereum network. Ethereum can be a very good investment option according to estimates and some predictions say that this cryptocurrency could be above $1 000 in the next several years.
The price of Ethereum extended its correction from the recent highs above $480, registered in the first week of September. Despite this, there is no reason to panic and as long the price of Ethereum is above $300 this cryptocurrency is not in the “SELL” zone. The positive news is that residents in the Swiss canton of Zug will be able to pay up to CHF100K (about $109K) of their taxes in Ethereum. Ethereum network is constantly adding new clients and the development of applications interacting with this network has never been stronger. The rise of Decentralized Finance (DeFi) is gaining momentum and investors in this cryptocurrency are able to gain income from their assets through DeFi tools.
It is also important to mention that the price of Ethereum is correlated with the price of Bitcoin and investors in this cryptocurrency should also have Bitcoin on their “watch list”. Bitcoin has found strong support above $10 000 and some analysts believe that BTC may start trading higher in the upcoming days. This is positive news for the price of Ethereum and this month could be very significant for the future price of this cryptocurrency.
Technical Analysis: Bulls are focused on breaking strong resistance level at $400
The technical picture implies that the price reached the bottom, but is it ready for a rebound? Let’s have a closer look at the chart below.
Data source: tradingview.com
According to the rules of technical analysis, the main trend of this cryptocurrency is neutral-bullish. The current resistance levels are $400, $440 and $480, $300 represents the strong support level.
If the price jumps above $400 it would be a “BUY” signal and we have the open way to $440. Rising above $480 supports the continuation of the bullish trend and the next price target could be located around $500. On the other side, if the price falls below $300 it would be a strong “SELL” signal and we have the open way to $250.
The future actually looks bright for Ethereum but investors should have in mind that Ethereum isn’t the only privacy coin competing for market share and some other cryptocurrencies could potentially limit the adoption of Ethereum. The price of Ethereum extended its correction from the recent highs above $480, registered in the first week of September. Despite this, there is no reason to panic and as long the price of Ethereum is above $300 this cryptocurrency is not in the “SELL” zone.
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