Ethereum’s price continues its medium-term flat. The scale of that flat is a basis for a trend of the same scale. Which means that there is a chance for a powerful movement.
Such behavior of the price could become a good reason to continue the long-term upward trend. The correction has formed, there is a turning wave, but no final confirmation. On the other hand, continuation of a downward trend is less likely, but there is always a chance of an emergency. The current accumulation of volume within the sideway channel will result in only one reaction - a powerful impulse.
For a final confirmation of a likely growth, Ethereum’s price has to fortify at the level of $13. What is so important about that mark? According to data from the POLONIEX exchange, that is the mark with the highest accumulated volume of sell orders. The level of $13 also matches the 61.8% Fibonacci retracement. Is it a coincidence? About 50K Ether is in sell orders set at that mark. If that’s most of the traders, their future expectations are not exactly positive. A bit lower, near $11.5, there is about 35K Ether worth of sell deals. The volume of buy orders is about twice as low. A larger level, which also matches the 61.8% Fibonacci retracement has been formed at $10. That level of buy orders will slow down the fall of Ethereum’s price, at least for as long as it exists. At first, one might think that the overall situation favors a decline, but it’s still too early to draw final conclusions. The market is always changing, so it’s more reasonable to use a conservative approach.
The level of $10 can be a support line for the formation of an upward trend. But for a more confident turn, the price has to pass the $13 mark, as that line can become a support line for a powerful fall. That’s why waiting for the price to fortify at one level or another is a more conservative approach. Such a reaction will indicate some degree of certainty.
Ethereum Classic keeps falling. It seems that the earlier sharp growth was of a purely speculative nature. ETC is headed towards its original value. Does that mean that it’s over?
Will there be a new growth?
At the moment, the amount of sell orders significantly outweighs that of buy orders. There’s no justification to even consider buying, currently. A more likely growth could be expected after the ETC price reacts to the level of $2-$2.20. That mark has accumulated a large volume of sell orders. That’s why if the price holds at that level, it will mean that there is support for future growth. There is a good chance that that growth (if it happens) will stop the large volume of sell orders, which has accumulated at $2.8-$3.1. If there is not enough support, the price will return to its current value.
As was assumed earlier, the currencies didn’t form turning waves, which has provoked the dollar’s drop, which was then followed by a rise. A somewhat negative Ethereum situation and a continued growth of dollar can negatively impact Ethereum’s price.
Key technicals, where a change of trends is most likely to happen:
The level of $13 on Ethereum will be decisive for the continuation of a long-term growth.
In order for Ethereum Classic to grow, it has to break through the $2-$2.2 resistance. ETC’s price has to fortify at that mark and form a turn to growth.