Ethereum Could Gain 10% Before ETH Resumes Its Reversal

Christian Encila

2 years ago

2 mins read

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With the latest price drop in the first half of this month, Ethereum has reached a new low. Ethereum, as of late, has been estimated to be worth around $1,420. Ethereum’s future, though, appears to be gloomier at the moment.

The current price of one ether is below the 61.80 Fibonacci level, which is somewhere around $1,340 at the time of this writing. Any progress made since early September has been lost in the recent market downturn.

The coin still has some chance of being salvaged, though. There has been a lot of volatility in the financial markets since the market crash on September 13 in response to the CPI report and interest rate hike.

In response to the recent negative developments in the U.S. economy, stock prices and cryptocurrency prices fell precipitously. However, Ethereum has a chance of gaining 10% before it resumes its backward motion.

On Jittery Traders & Federal Reserve Rate Hikes

Fear has spread among traders and investors due to the combination of historically high inflation and the Federal Reserve’s quantitative tightening initiatives, which center on a potential 1% interest rate hike.

The market’s reaction to this newfound anxiety was a precipitous drop almost instantly. The price decreased by 26.02 percent from the 10th to the 18th of September, effectively erasing the purported recovery seen in late August.

There are two possible ways for the price of Ethereum to recover: 1- investors will “buy the dip” in response to a price decline, or 2- investors will “HODL” until the price recovers to normal.

Scenario one is more probable, as buying the dip will result in a profitable investment for traders. With the Stoch RSI indicators providing strong oversold signals, it is possible for the market to see increased purchasing activity as anxieties recede.

Recent market movements are also consistent with the XABCD harmonic pattern. This can be a buy signal for traders, resulting in a 10 percent price increase relative to the present price movement.

Second Scenario Might Lead To Another Pain For Ethereum

If Ethereum is ever to rebound, bulls must generate and maintain sufficient momentum to overcome the current market’s worries.

The momentum must also surpass the 1,467 price range, as failure to do so will impede future uptrends.

The support for this hypothetical bull rebound is $1,243. Any downturn from that point can provide the bears with sufficient momentum to break the 78.60 Fib level. This could be the case if market confidence is not restored.

Buyers and holders of Ethereum should also monitor other currencies. With a correlation value of 0.72, any additional decline in Bitcoin’s price will prompt a sell-off in Ethereum and other altcoins.

ETH total market cap at $163 billion on the daily chart | Source: TradingView.com

Featured image from Crypto Basic, chart from TradingView.com

(The analysis represents the author's personal views and should not be construed as investment advice).

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.