Ethereum price has shown significant growth for the first time after a long fall. Is this a reversal wave?
Mastercard, QIWI and Cisco joined the EEA
The current price trend does not seem quite sustainable. After Mastercard, QIWI and Cisco have joined the Enterprise Ethereum Alliance, the price went up. But, this growth started a bit earlier. Ethereum has been falling for quite a long time: having fallen above $150, it has generated an impulse upwards. We see a substantial increase in demand at $150, and in the course of this short-term trend development, the demand is only growing.
We saw similar growth in demand on July 13, but after reaching $220, it fell considerably and broke the entire upward structure. The trend couldn’t continue to rise upwards. The news of new participants joining the EEA prompted big purchases. But the current increase pullback from $138 may break the upward trend.
The basic level, responsible for the trend structure, has been broken. The key point is at the $200 area with the largest volume of purchases concentrated there. A breakdown indicates that, most likely, a large buyer has partially locked in profits, whereas the demand has fallen. But the number of pending orders and purchase bids far exceeds the number of bids to sell, while the bulk of buy orders is at $160. At the same time, $176.5 is the level of the largest trading volume, which can also be a major buyer’s position. For the rate to fall deeper, it will need to overcome this resistance. In this case, the price will form a reversal down. Otherwise, having reached $176.5, there’ll be a new rebound and the growth will lead to the flat wave to $220, at least.
What to expect?
If the price reaches $176.5 without a reversal down, the growth will most likely continue.