The beginning of this year coincided with the growth of Ether. The price has approached a key long-term mark. Will this cause a continuation of the long-term upward trend towards $20?
The price of Ether is moving in accordance with the long-term upward trend scenario. The price has formed a sub-wave of a medium scale, which can very well be a part of this long-term trend with the minimal target set at around $20. Everything depends on how Ether’s price will now behave. It’s important that the key level at $7.9 has been broken through by this upward impulse, which has had a disruptive effect on the structure of a then likely downward trend. This means that the movement has to build a turning shape from scratch, so it’s safe to say that a downward impulse is less likely now.
This is true, but only if we judge by the movement structure. However, if we take a look at the traders’ sentiments, it seems by the stop orders that the sell orders are the most numerous ones. A large volume of sell orders near $9 can pose a serious resistance to the continued growth of ETH. The majority still believe the upward structure from $5.8 to be more of a correction, rather than a turn to growth. Although a large buyer takes the deals of the majority of traders into account, they still have different trading tactics. That means that by buying out Ether until $9.7, it will be more profitable for them to keep buying at least until $20. That is why if the price fortifies near $9 and breaks through the $9.7 mark, the price of Ether will be more likely to keep growing at least until $20.
Judging by the buy stop orders, the situation at the moment favors large medium-term speculating sellers. The majority of the bulls still perceive the structure, which has started near $5.8, as an upward turning wave. That’s why a large volume of buy orders is situated at the rebound levels of the sub-wave, near $7.8 and near a key level of a rebound towards the entire upward movement from $7.3 to $7. That means that if a large seller appears on the market, the price of Ether will drop to at least $6, because after breaking through two key lines, it is more profitable to get the price towards the next significant level, which holds another large volume of buy orders.
The price of Ethereum Classic has finally managed to reach the long-term key level. After some large speculation, ETC’s price has received significant support from the bulls. As strange as it may seem, Ethereum Classic is still at the stage of determining long-term direction. The level of $1.5 can be both the peak of a correction towards the long-term downward trend and the peak of an upward turning wave. Consequently, the peak of the turning wave also belongs to the long-term scale.
At the moment, the price of ETC is fortifying at this key level. The downward rebound has to stay above $1.2 otherwise, the entire structure will turn into a flat. So the higher the point where the rebound is going to fortify at, the more likely there will be a continuation of growth. For it to continue, we need a turning wave above $1.5, along with a fortification above that mark. Under such conditions, the chances will be on the side of a long-term growth until the next significant level. In regards to the downward scenarios, the most likely one, for now, is a flat-like movement because the current situation with the buy orders is not profitable for big sellers. That’s why it is still too early to talk about any sharp falls.
Key technicals where a change of trends is most likely:
- In order for Ethereum to keep growing, it has to fortify near $9 and form a turning wave.
- In order for Ethereum Classic to keep growing, it has to form a turning wave above the $1.5 mark.