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Ethereum price has reached its historical maximum again after a sharp fall in June last year. Why has the price stopped at the $20 mark and how will Enterprise Ethereum Alliance affect Ethereum in the future?
The news about the Enterprise Ethereum Alliance launch has led to an increase in volatility. Then again, that is the case for most significant events. Such news is a great opportunity for big sellers to impact the price. Here their motives play a crucial role, which is quite evident. If we see powerful growth coupled with negligible rebounds and positive news, the bears will be much less numerous than the bulls. Thus, there are no particular obstacles to the price growth. Consequently, this is a good opportunity for the price to go up.
In a different scenario, we have the majority of buy orders and that is also a great opportunity to sell Ethereum. In that case, the structure of the upward trend would have been broken. It would have happened near the $14.2 point because that is where the largest volume of buy orders is accumulated.
The minimal $20 target has been reached. A stop at $20 is indicative of a big buyer. All traders can see the peak of the long-term trend at $22, and, naturally, nobody wants to lose out by buying at the highest point. That’s why the sellers will be the majority of the traders acting there. Looking at the diagram, one can see that the larger part of the deals are sell orders. So it might be unprofitable for a big buyer to keep raising the price for as long as the situation remains the same. If the $20 target is final, there will be a reversal at the key line near $18.
If the upward trend does have support, a reversal at $18 is unlikely. In order to keep growing, Ethereum price has to fortify at a key long-term level near $20.
Ethereum Classic price has managed to fortify at $1.25 and form an upward reversal. The graph has reached the $1.5 top limit of the $1.2 to $1.5 medium-term flat. There are two possible development scenarios at the moment: continuation of the medium-term flat or a flat exit and the upward trend continuation.
A large buyer has raised Ethereum Classic price towards the accumulated volume of sell orders. It’s bigger than the volume of orders at $1.2 to $1.45 level. Based on the diagram, it’s possible to say there’s good volume of buy orders between $1.3 and $1.36. That’s why if a big trader is set on taking their profit, a reversal is to take place at that mark.
If, however, the big player has more ambitious plans, a reversal at $1.3 is unlikely. In that case, the Ethereum Classic price will have to settle above $1.36 and form an upward reversal at $1.5. This way ETC will have better chances of rising towards the $1.7 to $1.8 peak of the upward trend.
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