Ethereum has reached the minimum target of a medium-term correction. The future structure of its price will hint at the following direction.
Will the medium-term upward trend continue?
The structure of the short-term downward trend was not disrupted. Thus, the formation of a medium-term downward rebound has continued. The level of $11 is a key point, where a change of cycles could take place.
If the medium-term trend does not have sufficient support, it will provoke a fall right down to the base of the whole structure. If Ethereum’s price rebounds up from the level of $11, the $12.2 resistance line has to be broken through, in order for a more powerful growth dynamic to follow. The diagonal channel, average 50 and Fibonacci level 61 intersect at that level. Hence, that is the most likely point for the majority of the bears to show themselves. That’s why the fate of the medium-term trend will most likely be decided at that resistance line.
In order for the continuation of the medium-term upward trend to become most likely, Ethereum’s price has to fortify and form a turn at the level of $12.2.