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ETHUSD Stalls Behind $400: Will Another Rally Spark Soon?

Bitcoinist | Aug 26, 2020 | 15:59

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Ethereum continues to trek the sideway route following the sharp plunge last Friday. The ETHUSD pair fell by 4.94% on August 21, retreating at $387 after reaching an intraday high at $419. It made very little gains the next day and has yet again dropped below the critical resistance at $400. Despite the month-long stale road, will ETHUSD break the $450 mark?

ETHUSD recorded a new high in 2 years at $447 last Monday. However, the reversal prevailed amid the strengthening US dollar. The pair printed an 8.56% loss in a week with the lowest point at $379. It seems that the second-largest crypto by market cap met a tough wall at $450 resistance, before falling back below the $400 level.

ETHUSD peaks at $447 last week, before dropping below $400, PrimeBit WebTrader

On a positive note, some analysts think Ethereum is not backing out but is getting ready for another boost. Chris Burniske, partner at Placeholder Capital, pointed out that Ethereum’s on-chain economies (in reference to DeFi) and its appeal to the public could push its network value to $1 trillion. Another popular crypto analyst and trader named Michaël van de Poppe iterated that Ethereum is getting ready for a new rally as it breaks vital moving averages on higher time frames. But, it will go through a correction first.

ETHUSD remains bullish above 50-, 100-, and 200-day SMAs [YTD daily chart], PrimeBit WebTrader

ETHUSD is trading at $393 as of writing and is hovering around the breakout threshold at $400. It gained 4.42% on Monday, erasing some of the losses of the previous days. ETHUSD is up by 207% this year to date, outrunning BTCUSD (bitcoin), which gained 68% in the same period.

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