Ethereum’s price has approached the $20 mark. The long-term upward trend continues. How much potential is left in this movement?
Ethereum’s price is forming a short-term flat
After exiting the zone of a likely medium-term flat of $10-14, Ethereum’s price has formed an upward trend. The cancellation of a flat has caused the continuation of the long-term upward trend. This way, the movement has turned out to be a powerful one, as was predicted in the beginning of June.
The upward surge in the beginning of the week was supported by the GBPUSD and EURUSD markets. Both euro and pound dropped sharply soon after, while Ethereum has stayed inside a short-term flat. When world currencies grow, the dollar usually falls. Consequently, that could influence the value of Ethereum.
Ethereum could wait this fall of world currencies out in the current sideway movement, after which it will continue going up. But in order for that to happen, the structure of the upward movement has to stay intact. The structure of the trend will clearly show which side is holding the advantage, at which point it may change hands.
The price will keep its current upward trend for as long as it has enough support from the bulls. That support may show itself at the level of $16-17. Several key instruments intersect at that mark, which could influence the traders’ decisions: the accumulated volume, the diagonal channel, and the moving average 55. If there is not enough support for a continued upward movement at that level, Ethereum’s price will at least start fortifying below $17. Such a behavior will indicate a possible downward turn for a deeper correction. A confirmation from world currencies will also be important.
The upward Ethereum trend will remain, unless the price starts forming a downward turn at the key level of $17. Downward turns on world currencies will increase the probability of a downward movement from Ethereum