The price of Ethereum continues to fall. It is close to become concerning as it is nearing $125. The reason why $125 is a critical price level for the Ethereum price is explained in this article (in sum, it is the support trendline for the long term bull market).
Ethereum is extremely volatile at this point. As seen on today’s price details it went intra-day from $178 to $132, which is a 30 percent change. That is huge, and it suggests there is a strong fight between bulls and bears. Some are buying, some are selling.
The key thing to watch is where Ethereum’s price will bottom. That is when buyers are taking over control from sellers. It suggest that, at that given price level, speculators have left the arena, and only strong hands (believers) continue to hold Ethereum. Visibly, that price level is not $180.
Could it be $132? It could be, but we cannot know, we need more trading days and weeks in order to get that confirmation. That’s what makes crypto trading so exciting: you have to wait a bit until you see the trends unfolding.
So it could well be that Ethereum would stabilize from here, and, if that plays out, it would be magnificent news for Ethereum bulls. A flat trading of Ethereum’s price would be the best that could occur to Ethereum’s bull market. That is because the volatility caused by speculators selling Ether would be removed from the equation. Ultimately, in that scenario, buyers would re-enter, and prices would go up again.
At this moment in time, we really cannot know how deep Ethereum will fall. The fact of the matter is that all cryptocurrencies are falling, so conditions are bearish. The fact that Bitcoin will be split is not helping out there.
We will have to give the market the time to prove at which price levels speculators are gone, and buyers take over control. Until then, it does not make sense to worry, you can only follow the price action and identify the patterns on the chart.