Ethereum jumped 5% this morning from the $1150 support. With this bullish impulse, the price is approaching a key resistance. This hurdle could push the price down close to $1000. Check out this analysis.
Will Ether (ETH) recover from last week’s 9% decline?
The crypto market suffered high volatility this morning. Bitcoin rallied 2% after falling 2.5% yesterday. As for Ethereum, it followed the leadership of the crypto leader, posting a 5% rise since yesterday’s low. This is likely due to the release of interest rates from the People’s Bank of China and the Bank of Japan. Although the rates did not move, the markets still reacted. With this rise, the price of ether (ETH) is approaching a key resistance, mentioned in a previous analysis.
We can thus envisage a rise of this crypto towards this hurdle of $1250. If the price breaks through this level, ether (ETH) may eventually recoup last week’s 9% decline. However, this obstacle turns out to be crucial since it is the 50% level of the Fibonacci retracement. Thus, this current rise could be a slight correction before ETH drops further. In this case, it could be that the value of this crypto returns towards $1000 before the end of the year.
A “double-dip” figure in sight
After touching the $1150 support, the price jumped 5%. But not only, we also note the appearance of a bullish pattern. This is the figure ” double hollow “. Accompanied by a divergence in the RSI, this figure sent Ether (ETH) higher after a 3% pullback yesterday. However, it seems that this rise is nothing more than a corrective movement. Indeed, the bearish impulse on Friday allowed the price to break through the lower part of the ascending channel. With this breakout, we can consider further downside. So, after a retracement move towards $1250, we can consider a decline in Ethereum towards the $1040 support.
It’s been a tough year for the crypto industry. Moreover, if the rumors and doubts regarding Binance are confirmed, the value of cryptos could plunge further. The best thing to do would be to closely monitor the evolution of bitcoin. Since it represents the vast majority of the total value of cryptos, its variation has a huge impact on the industry.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
