There are large Ethereum sell deals after a powerful growth to $50. Is the upward trend over? What was the reason for the $50 surge?
Correction or securing parts of the profit
On March 16, Bloq, a leader in the development of corporate-class Blockchain solutions, launched BloqLabs aimed at supporting open-source projects in the Bitcoin and Blockchain ecosystems. Thus, Bloq has signaled joining the Enterprise Ethereum Alliance. It is a good enough reason for widespread speculative activity, followed by big sell deals. But Ethereum price has fortified above the $30 mark where big buy deals were made earlier. All that indicates that the ETH price is still enjoying some support.
Continuation of growth
After a fall of more than 50 percent at the peak of the upward trend, large sell deals have made an appearance. Selling at $50 along with new upward surges from the previous growth level are a tactic of a big seller who is securing a part of their profit. The $30 level has not been disrupted, which means that the structure of the upward trend hasn’t been broken. Thus, the maximum level for the downward rebound will be at the $30 mark.
Rebound towards the entire upward trend from $5.8
The situation can change. A signal for the start of a correction towards the entire trend from December 2016 will be a reversal near $30. A reversal structure in that area is one of the signs that there’s a lack of support for the upward trend.
Ethereum Classic price has renewed the maximum of the upward trend from 2016. But the period of growth was a short one. Large sell deals started the next day. Sales after a break through the peak of an upward trend are one of the big player’s tactics. It is at moments like this one that the majority of traders open their deals expecting growth, and the big sellers secure their profits.
A fall like that, after a break through an important line, can hardly be called fortification. That’s why talking about an upward trend is only reasonable after the price fortifies near $2. The largest volume of sell orders is accumulated around that area.
End of the long-term $0.25 upward trend
If the price of Ethereum Classic does not have sufficient support for growth at the $1.65 mark, the most likely scenario is a new fall towards the minimal target of $1.3 for a correction towards the upward trend from $0.25.
For that course of events to take place, ETC price has to form a downward turn at the $1.65 mark.
Most likely scenarios
- If a downward reversal forms at $30, Ethereum price is likely to start forming a rebound towards the entire trend from $5.8.
- Ethereum Classic stands a good chance for a fall down to $1.3 if a downward reversal forms at $1.65.