The rebound of ETH continues. The downward movement can turn out to be the last subwave of the downward correction.
The correction towards the downward movement which has started at $8.8 has not been fully formed. The upward movement has failed to break through the diagonal channel, thus not reaching a key level, which was a profitable area for the majority of the bears. Thus, this downward movement is mostly a rebound, rather than a turn to decline. That was manifested in the form of a flat-like fall.
Judging by the buy stop orders, the current situation with the price of Ether is the most profitable for the majority of the bulls. Ether is currently being traded at a key long-term level, which can be the peak of a long-term correction towards the upward trend. That is why, we can see large volumes of buy orders from $7 to $5, which in turn impacts the movement of ETH’s price. This situation is unprofitable for big buyers in terms of short-term speculation. That means that Ether has little chance to fall sharply.
For as long as the downward structure remains intact, the downward correction will continue. The levels of the most likely upward rebound of Ether’s price are situated near $7, $6.5 and $6, with the $6 mark being the most important one. As a rule of thumb, the majority of buy orders are usually situated near the peaks. That is what the large short-term speculators take advantage of when they sell Ether to the buyers at the peak when they expect further upward movement, and then buy back much more Ether from the same people, when they start selling, expecting no further growth.
We have to rule out such situations, by waiting for at least one confirmation. When the structure of the downward trend breaks, it’s a likely indicator of the appearance of a large buyer. In order for there to be a chance for growth towards $9 and higher, the price of Ether has to fortify near $7.9. There is a large volume of sell orders above the diagonal channel. Thus, a break through this level will be the first signal of growth.
A big bear has crashed the price of Ethereum Classic. As we predicted, the downward correction towards the level of $1 was flat-like. After that, specifically beyond the level of $1, a profitable situation for a large seller has formed, which they have naturally taken advantage off. After selling a big volume of ETC to the buyers who have been expecting a continuation of growth, the big speculator has crashed the price quite heavily. There was a continuation of the long-term downward trend. But because that movement was caused by major speculation, it has returned to the original point. That was the goal of the seller - to sell some ETC and buy back more.
The price of Ethereum Classic is currently between two long-term levels, which are responsible for its future development. Those are the levels between $1.3 and $0.6. It is quite likely that the price of ETC will start forming a long-term flat between those two key points. Although formally, the flat has already started from the moment when the price of ETC has broken through the peak of a downward trend while undergoing a powerful fall.
The key level near $1.5 has not been reached. That is why it will remain critical. It is confirmed by large volumes of sell orders, and they will be the resistance needed for future growth. If Ethereum Classic manages to fortify near $1.5, there will be a good chance for growth.
Key technicals, where a change of trends is most likely:
- For a more confident growth on Ethereum, it needs to form a turn at $7.9.
- Long-term growth of Ethereum Classic will likely begin after the price breaks through the level of $1.5. A fortification and a turn at that mark can cause a powerful upward impulse.