Ethereum price is at a stage of forming a hidden reversal of a long-term downward trend. The price is still in the area of high volatility.
Ethereum’s rebound from $10.5 can provoke an increase in volatility:
Such a development of the upward trend can indicate a possible hidden reversal. That reversal is taking place at a subwave level when there is a clear advantage of one group of traders over the other.
Two possible scenarios for development:
A break through $11.7 and continuation of growth towards $20:
A confirmation of this scenario would be a fortification of Ethereum price above $11.7 because if that mark is broken through, it will become possible for a big seller to enter the market. However, in that case, the fall will likely be flat-like. There is an accumulated volume of buy orders right up to $9, and they will prevent a more powerful fall.
A reversal of the upward trend from $5.8:
Due to the lack of a full-scale correction towards $9.9, the possibility of an upward correction towards the long-term downward trend is still there. While the current structure still exists, the last subwave for that potential rebound is forming. That’s why a key level at $10.5 can be a turning point for the continuation of the long-term fall.
A hidden downward reversal:
A typical example of such a reversal has taken place on the graph of Ethereum Classic. The price has made a break through the peak of the upward trend. After a rebound happened, a subwave has formed, which has managed to reverse the entire upward trend from $1.15. That’s what usually happens at key points.
A continuation of the downward trend:
For as long as the downward structure stays intact, the downward trend will continue. The Ethereum Classic price is at the peak of a larger declining trend. That is why if the price fortifies and turns to decline, the coming fall will be on a larger scale.
An upward turn from the possible bottom limit of a flat:
The peak of $1.15 can also be considered the bottom limit of a flat. In order for that scenario to be confirmed, we need to see an upward turn near $1.25 because that’s where the downward trend structure is going to break. In that case, the ETC price will have a chance to get back up to the minimum of $1.5.
The most likely scenarios
The upward trend on Ether is likely to end in case of a reversal at $10.5.
The downward trend on Ethereum Classic is more likely to change in case of a reversal at $1.25.