Ethereum Price is recovering (19% in the last 24 hours at press time) after a major correction of more than 30% earlier this week. We saw some early signals that we shared with our readers last week. Before we provide our readers with our most up to date perspective, let’s look at what happened during the last week. This is always a good exercise because understanding what happened, what works as indicators and what doesn’t is always a good way to build a certain understanding of this young Crypto market.
- Is this the beginning of an Ethereum Price Correction ?
- Ethereum Price Reached a Temporary Top According to Ethereum to Bitcoin Ratio
- Investors Keep an Eye on the Ethereum to Bitcoin Ratio
Ethereum price to Bitcoin ratio was attempting to breakout of an important resistance area, the 0.1 area. We urged back then investors to keep an eye on that ratio as it was approaching what we considered an important level. Eventually, the ratio was rejected at the 0.10 level, and a temporary Top was confirmed earlier this week. We are still watching that ratio to assess the next move in Ethereum price, if it keeps on falling, we might see Ethereum retrace further.
In our Ethereum Price Outlook for January 2018, we mentioned the possibility of ETHUSD correcting and backtesting the 750 USD area and possibly the 600 USD area before resume the uptrend. We saw that happen earlier this week and we reiterate how this is a really good thing to solidify the uptrend:
Even with all the turmoil around the South Korean Crypto ban possibility, we warned our readers that there is nothing fundamental threatening Ethereum or Cryptocurrencies intrinsic value.
What we conclude from this Ethereum Price Correction
Cryptocurrency investors should stick to their charts and be selective when considering the “news”. Regulation news or not, Ethereum and the Crypto market was due for a correction to cement its uptrend.
Our sister site InvestingHaven published yesterday why they believe this is a Healthy Correction in the Cryptocurrency market and how Bitcoin price has been Crashing for the last 4 years around the 15th of January.This didn’t stop it from increasing more than 1000% in 2017.
From a longer term perspective, we still believe Ethereum is in a strong picture-perfect uptrend. Not only that, but we like how the uptrend is marked by frequent periods of price consolidation. This is a plus because those consolidation periods are future strong support areas to reach our Ethereum 4000 USD forecast by 2020. The mid to long term trend is solid and still intact as shown by the following chart. However, there is still room for a backtest that could go as far as 400 USD.