Ethereum Price Analysis: May 17 - 23
Don’t miss the weekly price analysis for Ethereum and Ethereum Classic.
More than 80 companies have entered the Enterprise Ethereum Alliance (EEA) and Ethereum price has displayed a new wave of long-term growth.
Long-term upward trend is continuing
Following a correction towards the $87 resistance, Ethereum price has stopped, due to the support from big bulls, and a new powerful long-term growth wave has followed. The support of a big buyer, or buyers, could be determined at short-term scales. At the five-minute graph, we can see how the level of sell deals and overall activity have been growing around the $87 area, but the price has formed a flat-like movement. It seems that this rebound has been used to get rid of the bulls, which have been buying between $87 and $95, so as to make these traders unable to prevent growth, closing their deals with sell orders.
Upward structure disrupted
After a powerful surge of more than 100 percent, there were several big sell deals. At the very peak of this trend, the activity, as well as the volume of buy orders, has been at maximum levels. But the price has plummeted nevertheless. It has subsequently stopped inside the flat. That is a tactic employed by a big seller, who is making their profit.
Is the uptrend over?
The big sell deals at the peak of the upward movement signal the upward trend end from $87. The wave of the current scale has been finished. Because of that, new growth can display a similar upwave and go beyond $250 under the same conditions.
But before we determine the most likely outcome, Ethereum price has to fortify at a new peak. At the moment, we can see the growth of the volume, as well as the number of traders willing to buy at the peak of $183. Also, there is a large stop orders volume in that area. Similar to the previous fall to $138, this situation may be profitable for a big seller. That’s why there is a decent chance of a new fall, at least towards the wave of the flat. If a downward reversal takes place at $175.5, the chances are there’s a new fall towards at least the next resistance line.
Ethereum Classic is following Ethereum
Ethereum Classic price, after several weeks of flat movement, is experiencing a new period of long-awaited growth. The price hasn’t managed to reverse downwards at $6. Big buyers have supported Ethereum Classic.
That support didn’t last long. This is a typical example of the price going against the will of the majority. On the short-term scale, we can see how both the volume and the number of buy orders have been growing, but that is only beneficial to the big bear. The price has fallen and, after it has renewed its previous position, the scenario has repeated itself. Following the new fall, the majority of traders have started selling and that is a profitable outcome for the big buyer.
In regards to the entire upward trend from $7, we can identify a key line near $12. Powerful growth has started at that mark in the past. Additionally, we can see large buy stop orders around that area. The point of $12 can be considered the most likely peak of the correction towards the entire upward trend. Provided a lack of a downward reversal at that point, growth is likely to continue.
Most likely scenarios
Downward reversal at $175.5 can provoke a new fall.
The maximum correction peak may be before $12.