Ethereum price has reached the peak of its uptrend again. Is it the sign for the growth to continue?
Downward reversal didn’t happen
Ethereum price has fortified at $40, the most profitable level for the bulls, for more than a week. This could negatively impact the price if a big seller appeared on the market. The level of $40 is definitely profitable for the majority of the buyers, otherwise, the price wouldn’t have fortified there. That’s why a large number of buy deals have concentrated in that area. But a reversal did not take place. Instead, Ethereum price has formed a new upward flat wave.
Exit from flat and continuation of growth
It’s too early to speak about the growth continuation. The advantage of the uptrend has surely been preserved and the formation of a $40 - $50 flat instead of a deeper downward correction only confirms that. But for a new upward dash, the market has to break through a large volume of sell orders near the top limit of the flat, at $50. ETH price has to form an upward reversal wave at that mark. Under such conditions, an exit from that flat and continuation of growth are more likely.
Continuation of flat
For as long as fortification and reversal do not take place at one of the flat limits, that flat will continue. And if there is no upward reversal at the top limit of $50, the price will once again fall to $40 - $42.
The market is getting tense
Ethereum Classic price continues fluctuating within a flat. The volume is falling, and the sideway movement is getting progressively narrow. Usually, the longer the flat, the more powerful the exit movement from it. That is caused by the accumulation of larger trading volume. Basically, the movement scale grows with each one of the flat waves and the exit from that flat will be appropriately powerful.
More powerful growth
After such a protracted flat, ETC price has a chance to revisit its maximum of $3.5, formed last year. For this to happen, we need to see a confirmation in the form of an upward reversal wave, near the top limit of the flat at $2.7 to $2.8. If the market turns upward at that mark and breaks through the $3 resistance line, Ethereum Classic will have a decent shot at going beyond the level of $3.5.
The alternative scenario is a fall towards at least $2. It can happen in the case of a downward reversal wave at the bottom limit of the flat, near $2.6. The lack of reversal structures at the limits of the flat means the lack of advantage of both the bulls and the bears.
Most likely scenarios
- If there’s no reversal at the $50 mark, Ethereum price is most likely to fall back towards $40 to $42.
- Downward reversal wave at $2.6 may provoke Ethereum Classic price into a more powerful fall at least to $2.