The price of Ethereum has corrected significantly. We wrote in today’s Ethereum price analysis that it is imperative for Ethereum to hold the 200 USD level. The chart in this article shows why that is so important.
Reading this price chart reveals two things:
- The ongoing correction is the most significant one so far this year. That is not necessarily a good thing, as bearish momentum is building up.
- This correction can move the next important high that was set on the chart, i.e. the one indicated with the red circle. From a chart analysis perspective, this is an important level because of its sharp peak and sharp pullback.
From here, the most ideal scenario for Ethereum bulls is that the current price correction stabilizes between 200 USD and 240 USD as explained today in Ethereum Price Stabilizes Around 240 USD. If that happens, the bullish uptrend would still be intact, and the chart would look great. It would probably result in a stabilization period in which new bullish energy would accumulate before the next leg up starts.
However, if the price of Ethereum continues to fall, below 200 USD, it is truly imperative that 150 USD holds, as that is the support area of the bull trend. So the line in the sand of this Ethereum bull market is 150 USD (in case 200 USD does not hold).