Ethereum Price Analysis – Price adjustment as expected over the weekend

In our last article, we outlined two potential scenarios where the price of Ether would adjust after an extended uptrend. Well, over the past weekend, the price did exactly what it was predicted to happen in scenario 1.

Ethereum Price Analysis – Technical Summary

Ether price fell over the weekend to break the psychological limit of $ 400 and reached a price of $ 385, the strong support area analyzed earlier.

We at CryptoTicker always try to link past price actions to today’s technical analysis in order to predict potential buy and sell areas.

The current price of Ether at the time of writing is trading around 400 USD.

What happened after the sharp drop in prices?

In Figure 2 below, we share the previous screenshot posted in a previous article, in which we discussed a strong possibility of a small price adjustment, followed by a price rebound.

This price adjustment comes right after an extended uptrend since September, in which the price of Ether continued to reach higher highs, along with the big announcement from PayPal.

This price adjustment can be attributed to many factors:

• Short-term traders take their profits and liquidate their positions
• High prices often show a lack of certainty for investors, who in turn choose to exit the market and wait for things to cool.
• Short sellers are betting a lot on the above
• Investors who sell their Ether to buy more Altcoins

Ether Price Prediction – What are the prospects for the next week

After reaching scenario 1, it is highly probable to reach scenario 2, which further modifies the price of Ether to reach the yellow uptrend in Figure 3 below.

Another scenario is currently emerging as traders helped push the Ether price back up to the psychological level of USD 400 as shown in Figure 4.

If traders had noticed our strong suggested support of around USD 390, an easy buy position could have been placed with a Fibonacci 50% take profit level shown in Figure 4.

Ether Price Prediction – Will traders push the price further to reach previous highs?

We will assume two new scenarios:

• Scenario 1: Prices maintain their strong momentum in smoothing the price drop and the price returns to the USD 415 level
• Scenario 2: Prices continue to fall until they reach the yellow line, which is basically a long-term uptrend in Ether prices shown in Figure 3.

Keep up, keep up to date
Rudy Fares

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