Today’s Ethereum price crash shocked many investors. Ethereum dropped to $395. Note that two days ago Ethereum was trading at $525. That is a loss of 25% in just two days. It is fair to say this is a mini-crash.
As usual readers reach out to us asking how concerned they should be. Ironically enough just two days ago we received questions asking for our confirmation to buy Ether.
Let’s get things straight: you should only get concerned if you bought after Ether has doubled and if you invest too much in it. That is when you really get nervous when the price drops with 25%.
The one important lesson we get out of these messages is that investors buy low when nobody is talking about an asset, and never use leverage.
Back to the Ethereum price, where we stand, and where from here.
The good news is that, so far, this has the looking of a ‘normal’ retracement. The 6-month chart, which we selected as the chart of the day, makes the point: Ethereum retraced to $395 which is EXACTLY the breakout level. The chart shows the circles (annotated) which were previous resistance. As it stands, former resistance became support. Though one day does not make a market we want to see the coming days $395 hold strong.
As long as Ether trades above $395 it implies that breakout got tested successfully. Now THAT is super bullish, and it would suggest that our Ethereum price predictions will come true.