Watching Ethereum’s price during the last few weeks has been entertaining if you (and your portfolio) can withstand volatility. The price action kept traders, investors and analysts watching closely. Opinions diverged and as usual, only a select few were able to remain objective.
Ethereum’s price: Our standpoint
July the 16th, Ethereum’s price dropped by a whooping 16%. It was trading at $129, and as usual, traditional media was all over “The bursting of the Cryptocurrency Bubble”. That same day, our answer was how it’s all about value and that there are many reasons why no Ethereum or Cryptocurrency bubble is bursting.
Fast forward 2 weeks later and we got to share with our readers how Ethereum’s price chart is showing a beautiful Breakout!
And here we are today, writing about another Bullish sign we spotted in Ethereum’s price chart: Higher Lows, clearly visible in the chart above. If this pattern continues, it will represent a solid confirmation that the violent drop started in mid-June is simply a healthy retracement and not a reversal of the Bullish trend. In short, still maintaining a $1000 Ethereum price Forecast.
What is a “Retracement”
A retracement is a temporary reversal in the direction of a stock’s price that goes against the prevailing trend. A retracement does not signify a change in the larger trend. On a chart where a stock’s price is generally headed upward, retracements are the small dips in price that the stock experiences during its overall upward trend. Investopedia
What is a “Reversal”
A reversal is a change in the direction of a price trend, which can be a positive or negative change against the prevailing trend. Investopedia
Ethereum Price: What’s next
So far, we are still seeing the recent drop and volatility as part of a healthy retrace. The levels to watch are the following:
- Breakout: Price trading above $225
- Support levels: $200 the $175
- Bullish trend still intact above $125