Ethereum price is at the peak of a possible downward rebound. Is it likely the growth continues?
ETH/USD
No interest in growth
Ethereum price has not left the boundaries of the largest supply and demand levels. The fact that there were no reversal formations at $50, the level of the largest supply, confirms that there is no large buyer on the market, or, at the very least, they are currently keeping a low profile. Consequently, the price now has but one option, and that is to start a correction. Currently, trading at the largest demand level is going to hint the future development of the ETH price.
Medium-term flat exit
There are two possible options at the current $40 bottom limit: whether the continuation of price sideway movement or an exit out of the flat followed by a deeper correction. If the bulls are not the majority, we will most likely see a fortification and a downward reversal at the key level of $40 to $42.
Continuation of flat
An alternative turn of events implies that there is no downward reversal near $40. If that is the case, we can confidently expect a continuation of the new upward flat wave. Given that the structure of the uptrend has been disrupted, it is necessary to form a new upward reversal at the largest $50 supply level. Chances are the growth continues under such circumstances.
ETC/USD
Confident growth
It seems that the news of Greyscale’s ETC investment trust has provoked the growth of Ethereum Classic. The price has fortified above $1.9 key level, which was a defining moment for this upward impulse. Technically speaking, the minimal target near $3.5 has been reached, but the structure of the upward trend still holds.
Continuation of growth
ETC price is likely to experience the scenario we saw at the $1.9 point. In order for the growth to continue, the trend structure has to stay intact. The key line responsible for this structure is at the $2.3 level. Is a crossing point for several technical instruments, such as the volumes and the diagonal channel. It means the highest demand level for the current upward trend from $1.2. If the bulls manage to hold the advantage, that point will become the correction peak.
Downward reversal
Consequently, if there is insufficient demand at the $1.2 level, there will be a downward reversal. It is possible if the Ethereum Classic price fortifies at that mark and forms a downward wave. The minimal targets for the fall will be at the $1.5 long-term resistance point.
Most likely scenarios
- Ethereum price is most likely to experience a deeper downward correction if there’s a reversal at $40.
- Ethereum Classic’s medium-term growth is over in case of a downward reversal at $1.2.