- Ethereum recovers slightly from the dip to $335 but stalls under $350.
- ETH/USD is looking forward to a breakout from the symmetrical triangle.
Ethereum explored levels below $320 twice in September. Multiple attempts were made to pull the crypto above $400, but little progress was made above $390. Moreover, for the past two weeks, the price has remained capped under $360. The smart contract token dived again on Thursday and Friday with losses mainly following in the footsteps of Bitcoin, which revisited the levels around $10,400. Ether found support at $335 before resuming the uptrend to $348 (current market value).
Venezuela launches an Ethereum-backed stock exchange
Venezuela, a country that is badly hit by sanctions from the United States and too high inflation, has made a significant step with the launch of a ‘decentralized’ stock exchange backed by Ethereum blockchain. The new national exchange is already listed in the nation’s Official Gazette. The President, Nicholas Maduro, hopes that the development will aid in sidestepping sanctions imposed by the US.
The exchange, dubbed, BDVE will allow investors to buy and sell stocks, real estate and bonds on a digital platform. The assets are digitized using ERC-223 and ERC-721 token standards. Over the next 90 days, the exchange will be under trial, awaiting approval by regulators.
Ethereum could soon resume the uptrend to $380
Ethereum is trading at $348, as mentioned before. The price is dancing within a symmetrical triangle pattern. The pattern represents a period of consolidation heading to either a breakdown or breakout. It is essential to watch out for high volume movement to confirm a breakout. Simultaneously, symmetrical triangle patterns must be used in conjunction with other chart patterns and technical indicators.
ETH/USD 4-hour chart
At the moment, the Relative Strength Index (RSI) is beginning to shift towards the midline from a period of consolidation. A break above the average (50) would signal the return of volume and possibly the beginning the price action first to $360 and later to $380. The zone at $380 also houses the 50-day Simple Moving Average. On the downside, support is envisaged at the 100-day SMA around $340.
IntoTheBlock’s IOMAP model shows exceptionally high resistance, running from $350 to $358. Previously, approximately 750,000 addresses bought nearly 14 million ETH in this range. While most buying pressure could suffer demise here, gains above this range could pave the way for price action to $380 and $400.
ETH IOMAP chart
On the downside, support is observed between $338 and $348. Here, 806,000 addresses previously bought almost 3 million ETH. It is the most formidable support at the moment. Therefore, it calls for the bulls’ attention to ensure the price does not continue with the breakdown to lower levels as Ethereum could easily fall to $320.
Looking at the other side of the fence
It is worth mentioning that if the resistance between $350 and $358 is not broken soon, Ethereum could be engulfed in selling pressure due to exhaustion from the bulls and the bears’ return. Note that support between $338 and $348 is not robust enough to keep bears at bay, hence the lingering losses to $320.