On Tuesday, August 18th, ETH is slowly falling; the cryptocurrency is consolidating in anticipation of possible movements. The instrument is mainly trading at $430.92.
By Dmitriy Gurkovskiy, Chief Analyst at RoboForex.
As we can see in the daily chart, the rising tendency continues. After finishing a quick growth, ETH/USD is correcting towards the support area. The MACD histogram is still above 0 while its signal lines have formed a “Black Cross”. All these factors taken together may indicate that the instrument may complete the pullback in the nearest future and resume moving upwards. The upside target is at $465.00. Still, there might be another scenario, which implies a deeper correction towards $325.00.
In the H4 chart, the asset is still correcting within the rising tendency. The Stochastic is inside the “overbought area”, while a “Black Cross” may be an additional signal for another correction. The downside target is at $411.35. After completing the correction, the instrument may update its highs and continue trading upwards with the target at $465.00.
Market players are obviously betting on a brighter future for ETH. This conclusion may be drawn based on the options data: traders are seriously expecting the ETH price to reach the target at $500.00 and their confidence is growing with the time.
The ETH surely has a fundamental factor that supports the altcoin in the mid-term – a surge in interest of users towards DeFi, decentralized finance apps, which led to an increase in network usage.
According to the report from Business Times, after the ETH reaches $420.00 USD, the price will continue rising on the spot market. At the same time, a comparison of a futures contract on the ETH and the spot price shows a growth potential of 20%. It is another indication of further growth of Ethereum in the nearest future. We’re talking about a period of 40 days, not more, so one can expect some pretty intriguing dynamics in the cryptoasset in the short-term.
Disclaimer: Any predictions contained herein are based on the author's particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.
Dmitriy Gurkovskiy is a senior analyst at RoboForex, an award-winning European online foreign exchange forex broker.