The price of Ether is undergoing a correction towards the upward trend. Ether is currently at a key resistance line, where volatility is usually most likely to grow.
The price of ETH is at the peak of a medium-term rebound towards the upward trend from $5.8. Some bulls are placing buy orders at the projected peaks of the correction, at the sub waves, given that there is little chance for a proper rebound with the current powerful growth. That is why the price meets significant resistance at such points. As we can see, the price of Ether has stopped at that level and went flat. That indicates that the bulls were much more numerous, and the sell orders were situated beyond the $9.3 mark, which resulted in a less than profitable situation for a big short-term seller.
However, when a particular trend does not have sufficient support for continuing, the traders’ sentiments usually change. As we can see by the sell stop orders, the bulls have split into two groups. Some of the traders are holding on to their orders, expecting a continuation of the downward sub wave towards $9.3. Other bulls have placed their orders at the possible full-scale rebound towards the entire upward trend from $5.8. Such a situation can result in one of two most likely scenarios either the price of Ether is going to repeat a fall, rebound and continue its upward trend towards at least $10.5 or fortify and form a turning wave at $9.3, followed by a fall towards at least $8.2. There is also a third option, which will take place if a big seller enters the game. In that case, there will be no fortification. The price will instead simply ignore the key level of $9.3, however, in most cases after a fall the price returns to the original point from the last significant resistance.
The level of $10.5 is worth noting. In order for the upward trend to continue, it has to pass that mark. A large buyer can show him or herself at that point. In that case, there will be a false break through the peak of the upward trend at $11.6.
The price of Ethereum Classic is continuing its correction towards the upward trend. ETC has failed to form a turning wave at the level of $1.5. The lack of support from the buyers has provoked a fall towards the key level of $1.27. The price of ETC is fortifying at that mark, which the first signal of a full-scale turn to decline.
The current situation with the traders’ stop order is favoring the bears. But for a more likely fall, we have to see a formation of a turning wave. Otherwise, there will be a similar scenario to the one we have seen at $1.5 albeit this time it will be reversed. Some bulls think the level $1.27 the peak of a correction towards the entire upward trend. The rest of the buyers, which are a majority, are situated near $0,75, expecting a downward flat wave. This way, if the price forms a turn at the $1.27 resistance it will face a key level of $0.75 on its way down, which will likely stop the fall.
In order to continue growing, the price of ETC has to pass a key line near $1.4. A large volume of sell orders at that mark will provide serious resistance to growth. That is why in order to confirm the continuation of the upward trend, we have to see a turn form at that mark. An accumulated volume of stop orders is more likely to impact the upward trend before the level of $1.4. That will likely result in a flat-like movement.
Key technicals where a change of trends is most likely:
- The price of Ether is currently choosing its direction. In order for the upward trend to continue, it has to form a turn at $10.5.
- The price of Ethereum Classic is at the peak of a correction towards the upward trend. ETC stands a chance of a deeper fall but first we need to see a confirmation in the form of a turning wave. In order for the price to continue to grow it has to form an upward turn near $1.4.