Ethereum Price seems to be retracing after a 90% increase within a month. Is this the beginning of an Ethereum Price Correction ? A temporary Top in Ethereum price? What to expect next? These are the questions we will explore in today’s article.
Before looking at the charts, it is fair to say that last week was eventful for Cryptocurrencies in general as the Crypto community was watching closely what was happening with the supposed South Korean Cryptocurrency Ban. For Ethereum price specifically, we saw a resilient price action and a new all-time high at 1420.
But will the upward move continue? that’s the question of the moment. In order to answer it, we will look at 2 important charts: Ethereum Price Chart and Ethereum to Bitcoin Ratio.
Ethereum Price Chart
From a longer term perspective, Ethereum is in a strong picture-perfect uptrend. Not only that, but the uptrend is marked by frequent periods of price consolidation. This is a plus because those consolidation periods are future strong support areas.
But for the sake of answering the question from our title, we will look at the price action for the last 6 months and derive our perspective.
As shown by the chart above, if ETH retraces, the next support area is 810 USD and if the retrace is sharp enough, we might see ETHUSD trade around 600 USD.
Note how 400 USD is a very strong support area but we really doubt ETH price will drop that low before buyers on the sideline show up. Investors keep in mind though that things move fast in Crypto land and a price retrace in Ethereum could also trigger a temporary sell off. If that happens, 400 USD is a support that Ethereum Bulls want to see hold.
In fact, and as Bitcoin is picking up at press time, there is also a possibility (although less likely than our first retrace scenario) that ETH price will bounce back at 1139 USD. If it does, it shows the strength of EThereum Bulls especially considering there are many significant upgrades coming up for Ethereum this year.
The second chart we are watching is the Ethereum Bitcoin ratio chart. We recently wrote 2 articles about this important chart we are watching closely: As of today, this ratio might be signalling a potential TOP for Ethereum Price. Read our most recent overview of ETH to BTC Ratio and what it means for Ethereum price Here and our January Outlook for Ethereum price here.