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Ethereum’s price is ready for a breakdown of the long-term consolidation zone

June 13, 2020

After the short price correction on the Bitcoin-based crypto market Old coins are no exception and also show signs of recovery, with Ethereum taking the lead.

Altcoin It is one of the major cryptocurrencies on the market that suffered the least price correction on Wednesday.after Bitcoin’s price rejected the five-digit band for the third time in a month.

Now Ethereum has regained positions in the daily coverage area above USD 230 And after repeatedly testing its key resistance at $ 250, the altcoin appears to be preparing for a deeper correction, but within the bullish channel printed on its daily chart on Binance.

Ethereum’s price is ready for a breakdown of the long-term consolidation zoneEthereum’s price is ready for a breakdown of the long-term consolidation zone

With a bearish candle in the last hour, but with a lower intensity than its predecessor, we will likely see a turnaround at the break, which is determined by the rise in key bear support at $ 230.

The Ethereum is currently at a critical Fibonacci level and It seems to be following its bullish forecast it has generated since the last black Negro Thursday. “ and everything indicates that it will be able to bridge the gap in the supply zone.

However, the above is conditioned as long as it does not get into the gray support area Or worse, don’t dive under the $ 200 Fibonacci bear zone of 38.2 percent.

Currently, the altcoin is very far from its black Thursday low below the hundred dollar mark, and if the market continues to show signs of liquidity in its main pools, it is not inadequate to think of values ​​that resemble those of February this year.

Ethereum’s daily chart certainly points to a strong consolidation below the upper range. A completely bullish scenario in which we can think about reaching the ascending channel.

Basics of the Ethereum

Those who have long been immersed in the crypto ecosystem have no doubt about Ethereum. Apart from scalability problems, high fees and delays when upgrading from ETH 2.0 There is no doubt that Altcoin, and especially its blockchain network, is one of the most important on the market.

Ethereum is now one of the most dominant networks on the market in many ways, especially in the DeFi area. who have had an explosive year with a large number of use cases where almost everyone is running on the Ethereum network.

Not to mention that the scalability improvements promised by the ETH developers suggest that staging their technological improvements will be critical to their dominance and the explosion of use cases outside of the traditional sectors in which they are employed, a factor that must be considered for its final price.

As can be seen in the previous Matter Labs document, The proposals for scalability and protocol in ETH 2.0 will not only benefit Ethereum, but also many solutions around the network.

In this regard, the creator of Ethereum, Vitalik Buterin, recently pointed out that the high fees associated with the network may be extortion-related in relation to the excessive costs that have been observed for certain purses in Etherscan in recent days.

What you can expect from the Ethereum Prize

As for the price of the medium-term asset, A corrective Elliot wave is likely to be generated that will push the price towards the $ 250 range. that remains to face her immediate resistance. This would enable ETH to reconnect to previous levels on Black Thursday.

In this context, the Aroon indicator is currently showing the price correction path we have indicated, with its bullish signal pointing straight down.

Nevertheless, the CMF indicator shows that the cash flow to ETH remains stable and is increasing, a bullish hint.

In summary, it can be said that the RSI indicator, which indicates the relationship between buying and selling pressure on the ETH market, it is above the sales level, a sign that the bears are not yet taking control of the market.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trade movement involves risks. You have to do your own research when making a decision.

Market data is provided by the HitBTC exchange.