Ethereum price is at the top of a rebound of a medium-term uptrend.
Fortification at the highest demand level
After a week of balancing at the top limit of the flat at $50, the situation has reversed. Ethereum has fortified at the most profitable area for the bulls, near $40. From the standpoint of technical analysis, a new medium-term downward flat wave has formed. Before any kind of pronounced trend begins, the price has to exit that flat.
Fall in case of demand lack
The level near $40 is the most profitable for the traders who want to buy from a rebound. Many technical instruments intersect at that point. That’s why it is the exact place of the price stop. If we look at the buy and sell stop orders, it’s easy to see that the sell orders are more numerous. Hence, if the situation doesn’t change, it will be harder for Ethereum to start growing. And if there is not enough demand, the ETH price will most likely fall towards the next level at $27.
Given the fact that the structure of the upward trend was broken back on March 17, the bare minimum we can count on is a new upward wave of the flat. In order for that to come true, there has to be no downward turn at $40. If a reversal doesn’t take place, the advantage will be on the side of the bulls, and the minimal targets for growth will be near the top limit of the flat, at $50.
Formation of short-term flat
Ethereum Classic price continues its correction towards the uptrend. A flat has formed within that rebound, whose boundaries will be the levels at which a new trend will start.
Continuation of upward trend
The $2.4 - $2.8 boundaries of the flat are the levels of the highest supply and demand at the current moment. Because of that, and provided the demand for Ethereum Classic stays at the same level it was during the entire trend from $1.15, the peak of the correction will most likely be the $2.4 mark. This is the point where the growth will continue. Right now, judging by the buy-stop orders, we can tell that there is sufficient demand level.
Reversal of the trend from $1.17
If the advantage shifts to the side of the bears, a downward reversal is going to take place at $2.4. That scenario will most likely provoke a fall at least towards the medium-term resistance line of $1.5.
Most likely scenarios
- If there is insufficient demand for Ethereum at the $40 mark, the price will most likely continue falling towards $30 - $27.
- If Ethereum Classic price reverses at $2.4, the price will most likely fall at least to $1.5.