Ethereum Price Analysis - Adjustment in Prices as Predicted during the Weekend

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.

ETH/USD price 1H chart showing the price adjustment back to the USD 390 mark — **Fig.1** ETH/USD price 1H chart – TradingView.com

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.

ETH/USD price 1H chart showing scenario 1 previously forecasted — **Fig.2** ETH/USD price 1H chart on 23/10/2020 – TradingView.com

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.

ETH/USD price 1D chart showing the long term uptrend of Ether — **Fig.3** ETH/USD price 1D chart showing the yellow line uptrend– TradingView.com

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.

ETH/USD price 1H chart showing the Fibonacci retracement levels — **Fig.4** ETH/USD price 1H chart showing the Fibonacci Retracement TradingView.com

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.

Stay ahead, stay updated
Rudy Fares