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After a long uptrend since the Covid crash earlier this year, Ethereum has followed an unstoppable uptrend. She managed to get out of a 2-year consolidation area and get back on track. Unlike Bitcoin, Ether prices haven’t even reached half of their previous all-time high of 2017. For many, this is a déjà vu scenario, where prices are plunging sharply and returning to annual lows. Is this the case with the price of Ether?
Ethereum price analysis
When the price of Ether managed to break through the all-important psychological price of USD 500, we predicted in a previous article a price increase to higher highs, specifically in the USD 600 price area:
Today is the day we look back on this bullseye prediction and go set our next soft target, which is the psychological price of 600 USD, previously marked as a very important area in 2017.
CryptoTicker’s previous article on Ether Technical Analysis
The price reached a high of USD 620, so within a few hours the prices adjusted back to USD 480, an important price area already mentioned:
The sensible Stop Loss levels would be about 445 USD to 485 USD, depending on the risk appetite for traders who are just entering the markets. A breakout below these price levels could result in temporary stagnant prices, pending further news advances to lift the price.
CryptoTicker’s previous article on the technical analysis of Ether
Was the Ether crash a “normal” price adjustment?
Unlike Bitcoin, Ether’s price hasn’t even hit half the price of its previous all-time high of USD 1,415. Its price has been rising in a normal uptrend since the Covid crash earlier this year.
If we only look at the uptrend that has occurred so far this year, we can confirm a regular price adjustment. In fact, in early September, prices plummeted similarly for 3 consecutive days, only to consolidate and recover stronger. Looking at the long black uptrend line in Figure 2, we can see a normal uptrend pattern, bounded by two uptrends of support and resistance. We have not even broken or reached the support line of the uptrend!
If prices fail to recover and even break the lower uptrend channel, only then can we say there is a trend reversal and perhaps speculate whether the price has entered a consolidation level or will turn into a market. bearish.
People comparing the current price retracement to the 2017 slump shouldn’t do this, because many things are at stake today:
- Eth2.0
- DeFi
- Stakeout
- Genesis
- Technical data – A normal and “healthy” uptrend
Again, a normal uptrend, driven by good news and fundamentals. In Figure 3, we compare both uptrends and we can see the level of price increases on a weekly basis.
Should You Buy Ether Dip Today?
Looking at Figure 4, we perceive further price adjustment, as a risky head and shoulders pattern emerges on the ETH hourly chart. There are three scenarios in play:
- Buy at today’s prices with 2 stop loss levels depending on your risk appetite
- Wait for the price to correct further and buy around 470 with a stop loss level as a psychological price of 400 USD
- Wait for the price to consolidate until further notice, a position we recommend. There is no need to rush and buy from now, as the earnings would be irrelevant to give or receive $ 100.
Stay ahead, stay up to date
Rudy Fares
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