The price of Bitcoin (BTC) saw a significant correction of 28% during the week, from $ 41,000 to $ 30,000. At the same time, Ether (ETH) also saw a drop of 32%. The recent high for ETH / USD was $ 1,350 – about $ 70 lower than the all-time high – while the recent low was $ 910.
The month of January was marked by high volatility in the crypto markets. The feeling went from euphoria to depression and back again. However, the market is still in a bull market even if another correction occurs.
In this regard, it is only a matter of time before a new all-time high for Ether, following in Bitcoin’s footsteps.
Healthy fix for ETH
Ether corrected to the first level of interest at the 0.35-0.382 Fibonacci level. Traders often use this Fibonacci level to anticipate corrections.
Frequently, the corrections occur only at the 0.35-0.382 Fibonacci level or the 0.5 Fibonacci level.
This has happened in the case of ETH, as the $ 850 to $ 925 area is confluent with a previous point of resistance. This resistance point is found in 2018 during the multi-month rally from $ 350 to $ 900. This slight acceleration became the final rebound before the market reversed south.
But now the $ 900 region has reversed support, meaning it’s probably more on the upside. As often stated, if an asset drops 30% in an uptrend, it may be worth considering.
Levels to watch after an all-time high are broken
If the correction is complete, chasing is likely to occur with a new pulse wave. In this regard, ETH / USD would be looking for new highs, which can also be determined using the Fibonacci extension tool.
A critical point for the pursuit would be a break above the recent high of $ 1,350. Personally, I would expect to see a bit more consolidation before continuing, but a new wave of momentum is definitely on the table.
If such a continuation of the impulse wave occurs, the next targets are at the all-time high of 2017 (around $ 1,420), but also at $ 1,600 to $ 1,650 and $ 2,050 to $ 2,100. These latter targets are constructed using the Fibonacci extension tool.
Sideways action is even more likely in the short term
Lower timelines still show beach-related construction. Arguably, momentum is very volatile and markets fluctuate daily by double-digit percentage points.
However, the resistance of the upper range is between $ 1225 and $ 1275, and this must break to continue the bullish momentum.
Otherwise, Ether will most likely see sideways action. In this regard, a new area test of $ 900 is still on the table. Over the past week, market sentiment quickly turned to fear. So a rejection at the next major resistance and the market may see another correction.
Strength will come from the ETH / BTC pair later in the year
Slowly but surely altcoin-BTC pairs should catch up, but Bitcoin needs to stabilize for that to happen.
Currently, ETH / BTC is making higher lows and rocking previous resistance levels for support. This flip also occurred with the 0.025 sats level and served as a signal for further benefits. As the ETH / BTC chart shows, compression is building up, suggesting a big move is brewing.
Most likely, this will take time and should be expected later in 2021. But once the BTC pair starts to accelerate, Ether could reach 0.056-0.08 sats. This would, of course, also mean new all-time highs in US dollars.
The views and opinions expressed herein are solely those of author and do not necessarily reflect the views of TBEN. Every investment and trading move involves risk. You need to do your own research when making a decision.