As we mentioned in the previous analysis, Ethereum is likely to drop to a price around $2,100. This exact scenario occurred during the mini-dip two days ago. Since then the coin has started to rise, so let’s take a look at the charts.
How is ETH doing?
First, let’s take a look at Ethereum’s weekly chart. Here, each candle represents a week, so we can look back at price trends. This diagram is especially important to briefly explain the two most important zones.
I’m talking about the $900 zone – which we can leave as it is for now – and the $2,100 zone. This last area is very important. As you can see, this zone often determined the prices. Almost every time the price got here, the price changed direction.
Orders are executed in the green zone
ETH has struggled with this more often this year, but has been successful lately. After that, we usually see the price fall back to the level that previously served as resistance. And so it was not surprising if this was also the case with Ethereum. To analyze further, let’s take a quick look at the daily chart (every 24-hour candle).
Here we see a green zone beyond the gray. This was a small price point that formed within the larger gray area. As I said in the previous Ethereum review, this was a logical point to dive into. The price hasn’t bounced back here yet, and while ETH has moved out of the gray area, it’s not bad to see the coin executing more buy orders at the moment.
What can we expect?
We can see the latter better on the 4-hour chart, so we will discuss this briefly as well. Orders in the green zone were executed after which the price immediately rose. So far this has been an excellent buying opportunity. The only question is: where will ETH go next?
To prevent Ethereum from falling further, it is important that Ethereum remains above this green zone. The currency could fall a little further into the gray area without becoming “negative”, but we would prefer that this not happen.
The best-case scenario is if Ethereum surpasses the previous high with this boost. The coin has been hitting lower highs for a while now, and a break from these highs could spark another move higher. If this is followed by a higher low, it will be a real treat as it could be an indication that the trend is continuing further upwards.
Source: BTC Direct
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Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
