Ethereum is at an all-time low, as a result of the recent price decline in the first quarter. As of recently, Ethereum is valued at around $1,420. Ethereum’s future, though, appears to be gloomier at the moment.
One ether’s current price is currently below the 61.80 Fibonacci Level, or around $1,340 as of the writing of this article. The recent market crash has erased any progress since early September.
However, the chance for salvaging this coin is good. The financial markets have been volatile since September 13, when the CPI and increase in interest rates triggered a market crash.
Stock prices and cryptocurrency prices plunged in response to recent economic developments in America. Ethereum is still in a position to gain 10%, before going backwards.
On Jittery Traders & Federal Reserve Rate Hikes
Fear has spread among traders and investors due to the combination of historically high inflation and the Federal Reserve’s quantitative tightening initiatives, which center on a potential 1% interest rate hike.
The market’s reaction to this newfound anxiety was a precipitous drop almost instantly. From the 10th September to the 18th September, the price fell 26.02%. This effectively erased the recovery that was reported in August.
There are two possible ways for the price of Ethereum to recover: 1- investors will “buy the dip” in response to a price decline, or 2- investors will “HODL” until the price recovers to normal.
The scenario one scenario is most likely, since traders will make a profit by buying the dip. It is possible that the market will see an increase in buying as fears recede, due to the strong Stoch RSI signals.
Market movements in the recent past are consistent with the XABCD harmony pattern. It can act as a buy signal to traders and could result in an increase of 10 percent relative to the current price movement.
A second scenario could lead to another pain for Ethereum
If Ethereum is ever to rebound, bulls must generate and maintain sufficient momentum to overcome the current market’s worries.
Failure to surpass the 1,467 range in momentum will hinder future uptrends.
This hypothetical bull rebound has support at $1,243. A downturn after that point could provide enough momentum for the bears to break through the 78.60 Fib threshold. This may be true if the market is not re-confident.
Both holders and buyers should be aware of other currencies. With a correlation value of 0.72, any additional decline in Bitcoin’s price will prompt a sell-off in Ethereum and other altcoins.
ETH Total Market Cap at $163 Billion on Daily Chart | Source: TradingView.com Featured Image from Crypto Basic Chart from TradingView.com The analysis is a personal opinion of the author and should not be considered investment advice.