Ethereum price, along with other Cryptocurrencies are currently correcting. They are clearly following the sector leader Bitcoin that dropped by 3000 USD in 24 hours.
Time to panic and call the Crypto crash? not really. We will cover why this correction is healthy and could provide interesting entry points. Scaling would be recommended as no one can know for sure how Cryptocurrency prices can move. The fact that they are volatile has been the only constant so far.
Why Ethereum price correction is healthy according to the chart
As stated in our Title, there is an important level that needs to hold so Ethereum price can remain Bullish. That level is 475 USD. The price can fluctuate up and down but as long as it remains above, investors do not need to worry.
We will provide more details in our upcoming article Ethereum price levels to watch in January 2018. The chart below shows the price level and how it represents an important previous resistance level from earlier price action.
Why Ethereum price correction is normal given what’s happening in the cryptocurrency space
The current Ethereum price retrace is not concerning because the correction is sector wide. It is mostly due to Bitcoin’s hard fork scheduled for today December the 28th and the uncertainty surrounding it. we actually shared our thoughts last week about how Ethereum price is correlated to Bitcoin’s price.
Bitcoin futures are also adding pressure to the sector. The sentiment once they were launched was mostly caution as no one really know how the price will react to the launch. We also saw a sell the news happening. Both reactions are completely normal since price volatility attracts short time traders and the very new future market will make even the traditional Crypto “Hodlers” book profits till they can understand and assess better the new patterns (if there is any).
So considering this, we think this is a healthy pullback and Ethereum will likely continue its Bullish run with corrections here and there as long as Ether price remains above 475 USD.
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