Ethereum’s price is fortifying above a key resistance line. A short-term flat, which is also a rebound, is coming to its conclusion.
An exit from the flat can serve as the beginning of a medium-term trend
The movement which has started at $10, could become a wave of a medium-term flat. As long as that probability is there, there is a chance for a downward turn towards $10. A cancellation of the medium-term flat will provoke a medium-term upward trend.
We need to find a point where just one scenario remains realistic for further development. If the movement which has started at $10 is a wave of a flat, the upward structure will be disrupted. That will happen at the point of highest activity of the traders. The most probable point will be the intersection area of several key instruments: the diagonal channel, and Fibonacci level 61. Usually, the structure of any trend breaks where there is not enough support for it at the level, where the majority of the traders open their deals. That’s why if there is insufficient support for an upward trend, Ethereum’s price will fall, forming a flat in the process.
The $12.8 resistance line is the most probable point for a peak of a rebound towards the upward trend, which has started at $10. A medium-term upward trend could start forming at that level, or, alternatively, a turn, which can lead to at least a medium-term flat with the bottom limit at $10-11.