The upward movement of Ethereum’s price can be a correction. The graph is approaching a key technical, where volatility is highly likely to increase.
ETH/USD
Low volatility, together with a decline in volume, indicates the fact that Ethereum’s price is currently in an area which isn’t really profitable for both bulls and bears. With regards to the movement of the past two weeks, the ETHUSD price is still too low to sell and too high to buy for short-term traders. However, the full-scale rebound towards the $14.5 - $9.5 downward trend is not over yet. In order to form a movement of a higher scale, the price has to end the movement of a lower scale. Also, when one trend ends, there is often a chance for it to be followed by a trend in the opposite direction. That is why a break through the diagonal channel will be a decisive moment, a moment which Ethereum’s price is currently approaching.
During the whole week, the situation with the buy and sell stop orders hasn’t changed in any significant way. The largest sell orders are still concentrated in the area of $12.5. That mark is also the most likely peak of a rebound towards the downward trend. It is at that point that the market will decide whether this upward is a rebound or a turning wave.
In regards to the buy stop orders, the current setup tells us that the majority of the bulls see this downward trend at least as a new wave of the long-term flat. This will be followed by an upward wave towards $14, which is the top limit of the sideway movement. With this spread of orders, Ethereum’s price will have little chance to fall rapidly. The current distribution of orders is not exactly profitable for the big players’ short-term speculation. And, as we can see, the volume of the buy orders is significantly higher than that of the sell orders which is why if these conditions don’t change, Ethereum will be more likely to grow, rather than fall sharply.
ETC/USD
The price of Ethereum Classic has experienced a small growth and then stopped at a key level, which we have discovered a week earlier. The downward trend, which has started on Oct. 17, can be considered over. The fate of the downward trend, which has started in early August after a period of sharp growth, is currently being decided. The $1 mark is exactly where the price of ETC can start forming a correction towards the entire downward trend from $3.5.
However, the current stop order setup tells us that the upward movement is severely limited. The sell orders still prevail over the buy orders which is why it is still early to talk about any kind of protracted growth. But there are still good chances for small upward impulses for the price of ETC, similar to the one which took place last week. If the price manages to form an upward turning wave at $1, there will be a good chance for an upward impulse towards the next resistance line near $1.2. Otherwise, the downward trend will continue.
Key technicals, where a change of trends is most likely:
- In order for Ethereum to grow, it has to break through the key level near $12.5, where volatility is most likely to grow.
- Before Ethereum Classic starts growing again, it needs to form a turning wave at the level of $1.