Ethereum witnessed a strong rally last night, allowing it to return to the zone above $ 130. This movement occurred in parallel with Bitcoin, as it also increased from $ 5,900 to $ 6,700. .

This action suggests that it seems that ETH, BTC and most other cryptocurrencies are currently held within a certain range of transactions, perhaps because they are seeking direction from the stock market.

One analyst noted that Ethereum, the overnight price increase has brought it to an important resistance area, which means that the next momentum here may just be what is needed for the price to rise in Short-term.

ETH price will plummet if it is rejected at the current resistance zone

At the time of writing, Ethereum is trading at $ 135, marking a noticeable increase from the daily low of $ 120 that was set yesterday, as the bears tried to sink ETH to the level. low is 100 dollars.

ETH price today | Source: Coinmarketcap

However, the bulls succeeded in retaining the support zone at $ 120, and pushed prices soaring to as high as $ 137, where it found strong resistance from the bears.

In the short-term, analysts believe that ETH cannot break above the current resistance area, and the strong rejection here could send the cryptocurrency plummeting to as low as $ 100.

Well-known analyst Crypto Michaël explained in a recent tweet that a refusal from the current resistance level could cause the ETH price to drop by at least 20% from the current price.

“The ETH price will move to the same wall as the BTC price. If we want a short-term bounce, then I think this is the area we should consider. Turn on? then the target is found at $ 130 and $ 134. Losing this level the price could drop to $ 102-105 and $ 94. ”

ETH price may drop to as low as $ 50

The current low is at $ 80, but a trader using Elliott wave theory to analyze ETH price believes that it is in the wxy correction phase and is about to complete wave A of the Y wave.

“I believe ethereum is in the wxy correction phase and is about to complete wave A of the big wave Y. Wave B will take a long time to develop, then my bottom target is in the range of $ 40 to $. 59. The ~ 50 level for each ETH sounds unbelievable, but that is my final goal nonetheless. ”

The Elliott wave theory is based on investors' natural emotions and impulses. Since cryptocurrencies are a speculative asset, this theory is particularly effective in predicting the prices of cryptocurrency assets like Ethereum, Bitcoin and other major coins.

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A drop to $ 50 will bring Ethereum price back to the beginning of 2017, before the ICOs exploded and Bitcoin's parabolic rise.

Key factors to watch for to predict the next move of ETH

Ethereum's next trend will be heavily dependent on Bitcoin, as it has been guiding the synthetic cryptocurrency market for days and weeks.

If Bitcoin can sustain above $ 6,000 and breakout above the current resistance level, then it is likely that the price of ETH will also breakout above its current resistance area.

Whether or not this will happen will depend on the stock market, as BTC has formed a strange correlation with it over the past few weeks, meaning that further widening the downtrend of the stock market may be. causing BTC and Ethereum to drop significantly.

You can see the price of ETH here.

Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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According to Newsbtc

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