The bulls prevent Ethereum’s price from falling. Their active support could provoke the bears into giving up on their positions and thus leading to Ethereum’s growth.
How long will this sideway movement continue?
Ethereum’s price is forming a flat between two important resistance lines. The bulls’ support is clear at $10. The volume has accumulated at exactly that level, from which Ethereum’s price has been rebounding and moving up. The same can be said about the $14 mark. A similar situation is present at that level, albeit it favors the bears. They are not allowing Ethereum to grow by selling near the $14 mark and counting on the downward trend to continue. In whose favor is this struggle going to end?
The formation of the price has moved into a more narrow corridor. According to Poloniex, the volumes were falling during the downward movement. That is explained by the fact that this structure is not profitable for both bears and bulls. That’s why the group which will provoke a movement may do it on purpose, in order to make an advantage out of it down the line. The previous break through the level of 10 was a false one, because the price has returned into the flat. In the current situation the event could happen again, but the chances of a similar upward movement are lower, because the price is forming a correction below the level of $14, and hasn’t even reached it. This indicates that the bulls are holding the advantage.
In any case, the future trend will most likely become pronounced near these key levels of $13-14 and $9-10.
World currencies
Most world currencies are fortifying at a key level, from which an upward trend can start forming. But for a more likely growth, upward turning waves have to start forming. If a turn doesn’t form, the currencies will yet again drop, and the dollar will rise. Such a reaction can provoke a drop on Ethereum. Everything depends on the scale of dollar’s growth.
Ethereum Classic
The price of Ethereum Classic keeps falling. The price has rebounded again from the key resistance of $1.6, which protects the upward trend. The correctional Fibonacci level 23 practically coincides with that line. Whether the bulls are going to give up on their positions at that level will be clear during a new testing of the key level of $1.6.
In order for Ethereum Classic’s growth to continue, it has to break through the key level near $2.3. Large trading volumes have accumulated at that mark, which could stop an upward trend. The correctional Fibonacci level 50 is another confirmation of that resistance’s importance - the bears could start opening their downward deals there. If ETC fortifies at that level, there will be a chance for growth, at least to $3. Similarly, if ETC’s price starts fortifying at the bottom level of $1.6, it will indicate that the bulls are closing their positions. In that case, the decline could continue.
The key technicals, where the trends are most likely to change:
In order for a definite trend to form on Ethereum, it has to fortify and form a turn at either $13-14, or $9-10.
A key resistance line for Ethereum Classic’s growth is $2.3. From that mark, the price could drop again to $1.8.