Ethereum Could Gain 10% Before ETH Resumes Its Reversal

With the latest price drop in the first half of this month, Ethereum has reached a new low. Ethereum, as of late, has been estimated to be worth around $1,420. Ethereum’s future, though, appears to be gloomier at the moment. The current price of one ether is below the 61.80 Fibonacci level, which is somewhere around $1,340 at the time of this writing. Any progress made since early September has been lost in the recent market downturn. The coin still has some chance of being salvaged, though. There has been a lot of volatility in the financial markets since the market crash on September 13 in response to the CPI report and interest rate hike. In response to the recent negative developments in the U.S. economy, stock prices and cryptocurrency prices fell precipitously. However, Ethereum has a chance of gaining 10% before it resumes its backward motion. Related Reading: Chiliz Bulls Test $0.2505 Resistance – Can CHZ Reach Green Zone? 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. The price decreased by 26.02 percent from the 10th to the 18th of September, effectively erasing the purported recovery seen in late 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. Related Reading: AVAX Price Rebound Fails To Breach $22 Resistance Due To High CPI Data Scenario one is more probable, as buying the dip will result in a profitable investment for traders. With the Stoch RSI indicators providing strong oversold signals, it is possible for the market to see increased purchasing activity as anxieties recede. Recent market movements are also consistent with the XABCD harmonic pattern. This can be a buy signal for traders, resulting in a 10 percent price increase relative to the present price movement. Second Scenario Might 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. The momentum must also surpass the 1,467 price range, as failure to do so will impede future uptrends. The support for this hypothetical bull rebound is $1,243. Any downturn from that point can provide the bears with sufficient momentum to break the 78.60 Fib level. This could be the case if market confidence is not restored. Buyers and holders of Ethereum should also monitor 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 the daily chart | Source: TradingView.com Featured image from Crypto Basic, chart from TradingView.com (The analysis represents the author's personal views and should not be construed as investment advice).

Name	Symbol	Market	Market Cap ($)	Algorithm
chiliZ	CHZUSD	Crypto	408,075,359	Not Mineable

	Price Change	Price Change %	Current Price	Bid Price	Offer
	-0.0013	-2.18%	0.0583	0.0768	0.0769

High Price	Low Price	Open Price	Prev. Close	52 Week Range
0.0601	0.0576	0.0596	0.0596	0.054600 - 0.307700

Exchange	Last Trade	Size	Trade Price	Currency
GDAX	16:27:19	1,900.00	0.0583	USD

Price x Volume	Volume	Base Symbol	Related Pairs
67,882.64	1,151,760.15	CHZ	CHZEUR	CHZGBP	CHZBTC

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