Ethereum is currently trading between two major technical levels. Exiting this range will most likely provoke a weekly trend.
Will the long-term upward trend continue?
The price of Ethereum continues to correct in the direction of the downtrend. So far, the structure of this downtrend has not been disturbed. That’s why the bears are currently ahead. The downtrend has reached its minimum target. The upward movement is greater than the previous correction. Since the minimal rebound has been met and the structure of the downtrend has not been disturbed at the USD 14.2 mark, it can be assumed that the bears have an advantage. Thus the odds are on the side of continued downward movement within a major correction.
However, it is difficult to make a more certain prediction until Ethereum reacts on one of the most important technical levels. The price of USD 14.2 is considered “high” and USD 10.2 as “low” in the current situation. Why is that? Because these are the predetermined breaking points for both the downward and upward movement. In the future, the price of Ethereum will rise to other levels. This is why a flat usually forms between such levels until an imbalance develops in the market.
The fiat currencies are still subject to flat movements. These flat are corrections in the direction of the dollar’s uptrend. Most currencies have hit the minimal correction targets of their downtrends that formed after Brexit. As a result, there may be another sharp decline, which could cause the dollar exchange rate to rise. This scenario will occur if the currencies do not consolidate at the current level. If so, there is an opportunity for most currencies to take a growth reversal, which will send the dollar into a deeper correction.
When world currencies turn around for growth, this can affect Ethereum. In this case, the price of Ethereum has a chance to return to $ 20. But for a more confident signal, Ethereum needs to consolidate at an important resistance line of $ 14.2. A strengthening and forming a reversal at the $ 14.2 level will indicate that the bulls retain the advantage and a reversal to growth is most likely to occur. Should this be the case, the long-term uptrend should continue with a strong impetus. This usually happens when a movement is already defined. And where is a movement most likely to be defined, if not at predetermined breaking points?
It is worth mentioning an upcoming event in the Ethereum market. A hard fork is planned by the Ethereum developers for July 20th to 21st. The fork is expected to return the Ether tokens stolen during the DAO attack to their rightful owners. This event could have a positive impact on Ethereum’s trends.
The price of Ethereum is currently within an apartment. The price will take a certain direction after crossing the boundaries of this flat – $ 14.2 and $ 10.2.