Ethereum majestically closed in on the psychological resistance at $400. However, the smart contract giant hit a barrier at $395, leaving $400 unconquered. Meanwhile, ETH/USD is teetering at $384 amid an ongoing retreat.
The started over the weekend from levels around $350. Ether recovered in tandem with Bitcoin as it scaled the levels above $11,000. The majority of cryptocurrency assets have reversed from the downtrends sustained since September.
At the moment, the path of least resistance is downwards. The Relative Strength Index (RSI) points sharply downwards, following a rejection from the oversold area. Initial support is expected at $380, but if push comes to shove and Ethereum continues with the downtrend, the 50 Simple Moving Average at $350 will come in handy.
The low trading volume means that declines will not be rapid. Therefore, buyers have a chance to create barricades at higher levels, preferably $380 and $390.
ETH/USD 4-hour chart
According to IntoTheBlock’s IOMAP model, ETH has no significant resistance ahead. Nonetheless, if buyers fail to find balance at a higher level, the smart contract token might be forced to seek refuge at the critical support, $351 – $361. Previously, nearly 996,000 addresses purchased roughly 14.4 million Ether. The buyer congestion in this zone is strong enough to absorb the selling pressure in the event losses continue.
ETH IOMAP model
A bounce from the support will most likely give Ethereum an expected boost towards $400. On the other hand, ETH is yet to wriggle itself from bulls’ grip despite the retreat from $395. The increasing gap between the 50 SMA and the 100 SMA suggests that buyers have the upper hand, at least for now. Moreover, on-chain analysis shows that Ether has a clear path to $400.
Ethereum Intraday Levels
Spot rate: 385
Relative change: 1.58
Percentage change: -0.4%
Trend: Short term bearish bias
Volatility: Low
