- Ethereum price settles for consolidation above $370 after rejection at $390.
- ETH/USD is technically and fundamentally ready for a spike above $400 and $420.
- Ethereum developers set to launch the new Spadina testnet for deposits and genesis.
Ethereum is in consolidation after the weekend price action stalled slightly above $390. As discussed on Monday, the seller congestion at $400 was not about to allow the bulls an easy pass to $400. In light of that, the smart contracts giant token appears to be exploring levels under $380 but again holding above short term support at $370.
The 4-hour chart illustrates the formation of a symmetrical triangle. Ether is trading in the apex of the pattern. Despite the barrier at $390 and the slide under $380, Ethereum can move past the critical hurdle at $400. If the second-largest cryptocurrency gains exceed $400, there is a big chance that up leg will extend to $420.
ETH/USD 4-hour chart
The Bollinger Bands highlight the consolidation ahead of the breakout in conjunction with the Relative Strength Index (RSI). The former’s middle layer currently functions as a support. As long as the price holds above this mid-layer, we can expect Ethereum bulls to shift focus to $390 and $400 resistance zones. Similarly, the RSI is holding at the midline (50), illuminating the sideways trading action. A movement towards the overbought (70) would signal an increase in buying pressure, likely crowned by the triangle breakout or a final leg to $400.
Is Ethereum 2.0 release by the end of 2020 on track?
Ethereum developers are burning the midnight oil to ensure that the deadline for the launch of the much-awaited Ethereum 2.0 is achieved. There was doubt that the release date would not be met following the Medalla testnet’s August challenges. However, Prysmatic Lab’s editor Raul Jordan assured the community that Medalla’s setbacks will not in any way affect the launch of the new protocol.
As reported on Monday14, on-chain activity within the Ethereum network has been surging mainly due to the developments related to ETH 2.0. For instance, developers are looking forward to launching another testnet referred to as Spadina. According to a blog post published on Monday, Spadina will run side by side, Medalla. It is designed to test deposits and genesis as the protocol draws closer to the mainnet.
Ethereum fundamental analysis
IntoTheBlock’s IOMAP highlights the zone between $374 and $385 as the only key barrier between ETH and the $400 level. The metric shows that 888,290 addresses previously purchased 2.39 million ETH in this range. If this zone is flipped into support, Ethereum bulls will be rejuvenated for an ultimate liftoff above $400 and towards $420.
IntoTheBlock IOMAP chart
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On the flip side, there is immense support between $362 and $373, a range where 624,460 addresses bought 10.24 million ETH. This means that Ethereum is unlikely to extend the lower leg below the zone. Therefore, suggesting, the path of least resistance is upwards. It is essential to note, if this immense support is shattered, ETH will freefall to levels between $320 and $300.
Santiment, a fast-growing on-chain analysis platform, shows that Ethereum whales are betting on the price trending higher. Addresses holding between 10,000 and 100,000 ETH surged from 972 on September 12 to 982 on September 13. A similar growth pattern was also witnessed among addresses having between 100,000 to 1 million ETH. The curves appear to be flattening the moment as the price consolidates.
ETH holder distribution
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Looking at the other side of the fence
It is worth mentioning that Ethereum may eventually confirm a bear flag pattern in the daily range. If this happens, the bullish picture to $400 and $420 may be invalidated. Ether would then give in to increased selling activities with eyes on $300. For now, consolidation is carrying the day until a break, either up or down, is confirmed.
ETH/USD daily chart
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In line with the above analyses, Ethereum is poised for a majestic north. However, we should expect consolidation to delay the breakout as bulls push to regain control of the trend. Immense support between $362 and $373 shows that the downside is well protected. Hence, the path of least resistance is upwards.