Ethereum price is currently trading at the peak of its uptrend. How will the launch of the TokenCard debit cards impact the market?
Ethereum price keeps balancing at the top limit of its medium-term $40 to $50 flat. There was an attempt to form an upward reversal wave on April 18, but the correction never happened. The volume of sell deals was much higher than that of buy deals, which resulted in a fall to $48, the starting point of this wave. The price has again reached a turning point. Will it manage to form a reversal this time around?
Reasons for volatility growth
The TokenCard project is working on the development of Visa debit cards, governed by Ethereum smart contracts. The cards will allow their users to hold several cryptocurrencies at once. The ICO is set to launch on May 4. Such events usually result in volatility growing.
Exit from flat followed by growth
Ethereum flat started in the middle of March, is a correction towards the long-term growth from $5.8. As a result, the movement after the $40 to $50 flat exit will be of a corresponding scale. In fact, the news about the debit card project is quite positive and it is expected to increase the Ethereum demand. This will probably influence the growth, as there will be fewer people willing to sell Ethereum. If the market forms an upward reversal at the $52 mark, it will confirm Ethereum price growth.
Big sell deals
The appearance of a large buy volume is a great opportunity for a big trader to close their deals. There’ll be a signal from the key level near the highest demand area at $50, which protects the uptrend from $41. If a downward reversal takes place near that point, there will be a high chance of a fall down to at least $40 to $43.
Action patterns in action
As expected earlier, there was a movement of a larger scale. After fortifying at $2.6, Ethereum Classic price has formed an upward reversal. A similar scenario was repeated at the peak of the upward trend at three dollars, which was the last signal for the powerful growth beyond $3.5. Ethereum Classic price has renewed its last year’s maximum.
Buys from reversals or closed positions
The position of a big trader has been opened during the previous protracted flat. Because of that, we now have two possible scenarios for further development: the trader either starts closing their position or doubles down. The highest demand, as usual, is at the crossing point of several technical instruments near $3.9. If a downward reversal doesn’t take place at that point, the odds of growth will increase. As such, the $3.9 mark can be regarded as the most likely peak of a rebound towards the upward trend from $2.5.
Most likely scenarios
- Lack of an upward reversal at the top limit of the flat at $52 on Ethereum may provoke a fall down to $40 to $43.
- Ethereum Classic growth will be more likely to continue if there is no downward reversal at $3.9.