Ethereum price is at a stage of forming a hidden reversal of a long-term downward trend. The price is still in the area of high volatility.
Ethereum’s rebound from $10.5 can provoke an increase in volatility.
Such a development of the upward trend can indicate a possible hidden reversal. That reversal is taking place at a subwave level when there is a clear advantage of one group of traders over the other.
Two possible course of events
Break through $11.7 mark and continuation of growth towards $20
A confirmation of this scenario would be a fortification of Ethereum price above $11.7 because if that mark is broken through, it will become possible for a big seller to enter the market. However, in that case, the fall will likely be flat-like. There is an accumulated volume of buy orders right up to $9, and they will prevent a more powerful fall.
Reversal of the upward trend from $5.8
Due to the lack of a full-scale correction towards $9.9, the possibility of an upward correction towards the long-term downward trend is still there. While the current structure still exists, the last subwave for that potential rebound is forming. That’s why a key level at $10.5 can be a turning point for the continuation of the long-term fall.
Hidden downward reversal
A typical example of such a reversal has taken place on the graph of Ethereum Classic. The price has made a break through the peak of the upward trend. After a rebound happened, a subwave has formed, which has managed to reverse the entire upward trend from $1.15. That’s what usually happens at key points.
Continuation of the downward trend
For as long as the downward structure stays intact, the downward trend will continue. The Ethereum Classic price is at the peak of a larger declining trend. That is why if the price fortifies and turns to decline, the coming fall will be on a larger scale.
Upward turn from the possible bottom limit of a flat
The peak of $1.15 can also be considered the bottom limit of a flat. In order for that scenario to be confirmed, we need to see an upward turn near $1.25 because that’s where the downward trend structure is going to break. In that case, the ETC price will have a chance to get back up to the minimum of $1.5.
The most likely scenarios
The upward trend on Ether is likely to end in case of a reversal at $10.5.
The downward trend on Ethereum Classic is more likely to change in case of a reversal at $1.25.