In our last article, we laid out two potential scenarios where the price of Ether would adjust after an extended uptrend. Well, during this past weekend, the price did exactly what was predicted to happen in scenario 1.
Ethereum Price Analysis – Technical Recap
The price of Ether fell during the weekend to break the USD 400 psychological mark and reached a price of USD 385, the strong support area previously analyzed.
We at CryptoTicker always try to link past price actions to today’s technical analysis in order to forecast potential buy and sell areas.
The current price of Ether as of writing is trading around USD 400.
What happened after the strong price drop?
In figure 2 below, we share the previous screenshot posted in a previous article, where we discussed a strong possibility of a minor price adjustment, followed by a price rebound back up.
This price adjustment comes right after an extended uptrend since September, where the price of Ether kept reaching higher highs, coupled with the big announcement of PayPal.
This price adjustment can be attributed to many factors:
- Short term traders taking their profits and liquidating their positions
- High prices often show a lack of certainty for investors, who in turn choose to get out of the market and wait for things to cool off
- Short sellers banking heavily on the above
- Investors selling their Ether to buy other Altcoins
Ether Price Forecast – What’s next for this coming week
After reaching scenario 1, it is highly probable to reach scenario 2, which adjusts the price of Ether further down to reach the yellow uptrend in figure 3 below.
Another scenario emerges currently as traders helped push the price of Ether up again to reach the psychological level of USD 400 as shown in figure 4.
If traders took notice of our suggested strong support of around USD 390, an easy buy position could’ve been placed with a take profit level of the 50% Fibonacci mark shown in figure 4.
Ether Price Forecast – Will traders push the price further to reach the previous highs?
We’ll assume two new scenarios:
- Scenario 1: Prices keep their strong momentum in adjusting the price drop and the price goes back to the USD 415 level
- Scenario 2: Prices keep falling to reach the yellow line, which is basically a long term uptrend of Ether prices shown in figure 3.
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