The recent crypto market crash happened in an unexpected way. Many newcomers decided to dip their toes in the crypto world but were directly struck with a harsh price adjustment. Although the crypto market lost nearly USD 400 Billion in 1 day, many saw this as a buying opportunity. Most crypto prices hit their hard support levels before consolidating. For Ethereum price, this was exactly the case. Prices did fall in tandem with the overall crypto market, but were met with a strong buying power that held the 3K support area. Does this mean that you should benefit and buy Ether before it reaches 10K as predicted?
Did Ethereum Price REALLY Crash?
If we zoom in and take a newcomer’s perspective, prices crashed very hard. In fact, prices fell by more than 18% in one single day. This snowball effect happened so fast, and stopped out buyers who had very tight stop-loss areas. This sharp price decrease happened for no particular reason relating to Ethereum, but rather simply followed a panic in the crypto market.
On the other hand, if we zoom out a bit to get the full story, we can clearly see how that “crash” was a simple overdue price adjustment. In many of our previous articles, we always showed a parallel uptrend channel for Ether. In today’s price-action behavior, prices simply reached the upper channel and adjusted back to the lower channel. There has been a fakeout towards the 3K level which might have stopped out some traders. But this does not mean that this is the end of the uptrend. On the contrary, this shows a healthy price breather, allowing prices to prepare to go higher.
Ethereum Price Prediction – Should you Buy Ether at Current Prices?
This question is often asked by retail traders and crypto enthusiasts. In fact, it is never too late to enter the market, but early buyers often reap higher benefits for sure. For Ether’s case, we can clearly see how prices are reached the lower uptrend channel from figure 2. above. A sensible trade would be placing a safe buy order near this 3.4K area and placing a sensible stop around 3.2K for leveraged traders, and around 3K for unleveraged traders. This allows for a good buffer in anticipation of higher prices in the medium term.
Many institutional investors entered the sphere when prices crashed recently. Specifically forEthereum’s community, there seem to be good general fundamentals, especially with the rise of NFTs to the mainstream. Many mainstream media outlets are already publishing articles about “how this little 12-year old kid made Millions selling NFT art”. Although this is quite misleading, this brings more attention to NFTs, and their underlying infrastructure, like Ethereum for example.
The Crypto Market at a Glance
In the past 24 hours, the cryptocurrency market was seen consolidating. Prices barely changed and stayed at a support level for most cryptos. This price consolidation often prepares for a nice comeback, especially after a recent market crash. Harmony, Algorand and Tezos were the top 3 best performers in the past day, with 36%, 28% and 26% returns respectively. On the other hand, Perpetual Protocol, Nexo and Sushiswap were the top losers with -9%, -5% and -4% respectively.
1- Bitcoin (BTC) : – 0.48 %
2- Ether (ETH) : -2.97 %
3- Cardano (ADA) : – 0.13 %
4- Binance Coin (BNB): + 0.35 %
5- Tether (USDT) : 0 %
6- Solana (SOL) : + 0.1 % (surpassing XRP)
7- Ripple (XRP) : – 2.91 %
8- Dogecoin (DOGE) : – 1.97 %
9- Polkadot (DOT): + 6.31 %
10- USD Coin (USDC) : + 0 %
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Rudy Fares
