Ethereum price is at the peak of a possible downward rebound. Is it likely the growth continues?
No interest in growth
Ethereum price has not left the boundaries of the largest supply and demand levels. The fact that there were no reversal formations at $50, the level of the largest supply, confirms that there is no large buyer on the market, or, at the very least, they are currently keeping a low profile. Consequently, the price now has but one option, and that is to start a correction. Currently, trading at the largest demand level is going to hint the future development of the ETH price.
Medium-term flat exit
There are two possible options at the current $40 bottom limit: whether the continuation of price sideway movement or an exit out of the flat followed by a deeper correction. If the bulls are not the majority, we will most likely see a fortification and a downward reversal at the key level of $40 to $42.
Continuation of flat
An alternative turn of events implies that there is no downward reversal near $40. If that is the case, we can confidently expect a continuation of the new upward flat wave. Given that the structure of the uptrend has been disrupted, it is necessary to form a new upward reversal at the largest $50 supply level. Chances are the growth continues under such circumstances.
It seems that the news of Greyscale’s ETC investment trust has provoked the growth of Ethereum Classic. The price has fortified above $1.9 key level, which was a defining moment for this upward impulse. Technically speaking, the minimal target near $3.5 has been reached, but the structure of the upward trend still holds.
Continuation of growth
ETC price is likely to experience the scenario we saw at the $1.9 point. In order for the growth to continue, the trend structure has to stay intact. The key line responsible for this structure is at the $2.3 level. Is a crossing point for several technical instruments, such as the volumes and the diagonal channel. It means the highest demand level for the current upward trend from $1.2. If the bulls manage to hold the advantage, that point will become the correction peak.
Consequently, if there is insufficient demand at the $1.2 level, there will be a downward reversal. It is possible if the Ethereum Classic price fortifies at that mark and forms a downward wave. The minimal targets for the fall will be at the $1.5 long-term resistance point.
Most likely scenarios
- Ethereum price is most likely to experience a deeper downward correction if there’s a reversal at $40.
- Ethereum Classic’s medium-term growth is over in case of a downward reversal at $1.2.