After Ethereum peaked on the 13th of January and reached its all-time high, it was just smooth sailing south from then onwards. From hitting the area at around 1425 on the 13th of January, this week we saw the crypto dropping as low as the 250-dollar mark. Could this price for one Ethereum be a bargain for the crypto-investors? It would be difficult to say, as this is a very emotionally driven sector.
From the technical side, Ethereum continues to trade below its medium-term downside resistance line taken from the peak of the 4th of May. A break of that line could finally open the way for the crypto to move towards higher levels, but until that line is broken, we will stick to the downside.
If the bears manage to take charge from current levels, then we may see them aiming for another test near the 250 zone. That said, bearing in mind that both our short-term oscillators, although within their bearish territories, continue to drift north, we see the case for the latest recovery to continue for a while more, before the price drops again.
From the very short-term perspective, we could see Ethereum breaking its key area of resistance at 305, which continued to hold the price down for the past two days. The move could open the way towards the 342 level, or even the 370 zone, marked by the high of the 10th of August. Slightly above that runs the abovementioned downside resistance line, which could be a good area for the bears to jump into again and take advantage of the higher prices. This is where we could see another wave of selling coming in.
However, if the break of the aforementioned downside line happens, we could then see this as a potential change in the trend and we could start examining higher levels. The first good potential area of resistance could be seen around the 410 hurdle, which was the high of the 7th of August, a break of which could lead to a test of the 440 level, marked by low of the 20th of July. Further acceleration in the price could open the way towards the 485 and the 515 obstacles, with the latter being a strong resistance on the 18th of July.
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