Ethereum price, along with other Cryptocurrencies have seen major drops in their price in the last week. Following the initial rejection at the resistance from an all-time high. Ethereum price managed to reclaim its ascending channel and traded above 325 USD but not for too long. For investors, the question remains what’s next for Ethereum’s price?
Short term, there is no clear answer right now. But there is 2 possible scenarios that we will discuss next. Long term, If we consider what the projected demand looks like, our long term bullish Ethereum price forecast still stands.
Ethereum Price, The Bearish Scenario
Looking at the chart Above, we can clearly see that a double top has formed on Ethereum’s price chart. The price rose enough to almost touch the all-time high from July and failed to break above. Therefore, we might see a short term sideways range where the price would bounce between 325 USD and 200 USD till a new trend is clear.
As long as the price is trading above 200 USD, we are not really in a Bearish territory and the price could recover and resume an uptrend. The real Bearish scenario happens if the price drops below 200 USD as in that case, we might see the price revisit 80 USD. This is an extreme scenario that would only be triggered by 2 extreme but possible scenarios:
- Cryptocurrencies Crashing because of a major security breach
- Something really goes wrong with Ethereum’s Metropolis upgrade or to a certain extend, with Bitcoin’s Segwit.
Ethereum Price, The Bullish Scenario
Considering the extreme volatility in cryptocurrencies in general, one could argue that the current break below the main trend line support is not subsequent enough to be an indication of a trend change. There is still a possibility that Ethereum might reclaim the ascending channel especially given the fact that the current drop in price is not limited to Ethereum. Most Cryptocurrencies have seen a major correction and even crashes in some cases (Iota) within the last 36 hours.
This is the outlook so far, we still need to assess the progress on the Metropolis upgrade as well as updates on Segwit and what the consensus will be on the next move.