Ethereum’s price is stuck between two key resistance lines. Both bears and bulls are having doubts about possible scenarios for the nearest future.
At the moment, the entire situation on Ethereum can be characterized as 100% uncertain. For more than a week the price has been drifting around $13. Such behaviour indicates that neither bears nor bulls can find a possible trend. On the other hand, the lack of bears can be good news. Subsequently, because of that, the price is likely to fortify soon.
Ethereum’s price is being traded between two key levels of $14.2 and $11.5.
The $14.2 mark is a long-term resistance line, and a point of intersection for correctional Fibonacci 50% retracement and accumulated trading volume. That mark is the most likely future peak for the correction towards the downward movement which has started at $22.
The opposite resistance line is the medium-term level of $11.5. That is an intersection point for the correctional Fibonacci 61.8% retracement and the accumulated volume, as well as the diagonal channel, which is responsible for the entire upward structure from $7. The $11.5 mark is the most likely peak for a correction towards the upward trend.
The current price of Ether is not profitable for either bulls or bears. That is confirmed by the Average True Range (ATR) indicator - the volatility is dropping. Naturally, the $13 price is still not low enough for bulls, and neither is it high enough for bears. Ether’s price is inside a flat, that’s why it is generally not profitable. This can go on until some significant news surface, which could provoke either large buy or sell amounts.
The price becomes relatively low at $11.5, given that it is the bottom limit of the flat. Conversely, a high enough point for Ether sellers is near $14, where the top limit of the flat is set. Thus, volatility is very likely to grow at the levels of $14.2 or $11.5, which should lead to a turn in either of the two directions.
But for a more confident signal of a turn, we need to see a fortification at one of the key levels and formation of a turning wave.
The downward trend on Ethereum Classic is continuing. On the short-term scale, ETC’s price is forming a sideways movement with limits at $1.12 and $1.35, the movement itself being a correction towards the downward trend which has started at $1.55. The price has reached the key line at $1.15 for a third time, and the numbers of bulls here are significantly lower than they were the first time around.
The downward trend will continue for as long as its structure is intact. At the moment, the ETCUSD price has already rebounded from the key level of $1.3 twice. That point is the top peak for the correction toward the downward trend. The past reactions of traders can be seen here in the form of accumulated trading volume, which intersects with the correctional Fibonacci 61.8% retracement. ETC’s downward rebounds from that resistance line only serve to confirm its importance. That’s why that level is decisive for the future trend. For the downward trend to end, its structure has to be disrupted. That will happen under the condition of the price holding near $1.3. If that scenario is followed by an upward turn, the odds will be on the side of the bulls.
Key technicals where a change of trends is most likely:
- Key levels on Ethereum are $11.5 and $14.2. In case of a fortification and formation of a turn at either of those levels, the chances for an impulse will grow significantly.
- Ethereum Classic is in a downward trend. In order for it to grow, it has to fortify and form a turn at the level of $1.3.