ETH/USD daily chart

ETH/USD daily chart

Gate Trade Ethereum Monday, August 3, 2020 1077 2

Today, traders booked profits aggressively that quickly pulled the price down to $328.507, which is just above the 50% Fibonacci retracement level of the most recent leg of the rally. However, the bulls purchased this dip aggressively, which shows strong demand at lower levels.

 

Unless the price closes near the bottom of today’s large range, the outside day candlestick pattern will not signal a reversal. The ETH/USD pair might trade in a small range for a few days as both the bears and the bulls wait for clarity.

 

Contrary to the assumption, if the bears can sink the price below $320, a drop to the 20-day EMA ($302) is possible. A break below this zone will be a huge negative and could signal that a short-term top has been made at $415.634.