In the short term, Ethereum (ETH) investors are looking forward to a bullish break out that would charge a rally to the psychological market price of $200. On the other point, there is a likelihood of a further slide for ETH below the current $160/ USD level.
After a yearlong bearish market that has been ideal for prospective investors, hodlers are anticipating a rebound spearheads by a sudden surge beyond the current resistant level of $180. Hence, ETH charts show that the second largest Cryptocurrency is at a crossroad as any break out could have a long-lasting impact on the price.
Ethereum Is Poised For A Rebound Alongside Bitcoin
According to Coinrevolution, Bitcoin has been historically rallying in fourth quarters. As 2019 ushers in the last quarter of the year, BTC is already starting to show signs of rebounding, The latest data shows that the Crypto has surged by 0.64% in the otherwise bear market.
Meanwhile, with a correlation coefficient of 0.461 to Bitcoin, ETH is likely to follow suit in a rebound. This assumption, therefore, raises optimism that the way for Ethereum could be an inflection (rally).
A Strong Level Of Support At $160 Could Make or Break ETH
The current price is $172. For ETH to break out of the $180 resistance level, the value needs to consolidate and establish itself at $160. Failure for this to happen would lead to a free-fall situation eroding all the short term gains. However, with the current price nearing $180 level of resistance that has been holding ETH down for the last 6 months, investors can be assured that $160 cannot be breached. Hence this theoretical analysis also supports the forecast that ETH is in the offing of an inflection point.
Nevertheless, should the price stabilize above $160 in the short term, there needs to be speculative buying of ETH on a large scale. This would tile the RSI scales to the overbought side and increase the momentum of a rally.
What A Plunge Means For ETH Hodlers
The current trading point is crucial for the long term outlook of ETH/USD price trend. On a skeptical perspective, should ETH fall below $160 in the next few days, a free fall could ensue. This is because the possible next support levels are not set and the price could plummet to $100s.
On the other side of the spectrum, investors who leverage on the current bear market and buy ETH could earn high ROI in the future.
Conclusively, despite ETH being at crossroads and cycles likely to go either way, the odds of a rally are still higher.
On Coinmarketcap, Ethereum is the second largest Cryptocurrency on market capitalization basis. Its value of $18,559,620,906 is less than BTC’s $189,535,087,985 and more than XRP’s $11,005,122,037, BCH’s $5,197,353,285 and LTC’s $4,115,559,354.
As at press time, ETH/USD is at $172 having shed off 2.74% in the last 24 hours. Except for Bitcoin which has gained 0.64%, other Altcoins are also in the red indicating that ETH is under bearish price momentum.