The wave of FUD is accentuated again, after the central Bank of Japan made negative comments about cryptocurrencies. Ethereum does not escape fear, but it only seems to affect the short term, since the fall does not seem too worrying if we zoom out.
Today, while Ethereum is trading at $ 2,600, it accumulates a gain of more than 50% from the minimum reached on May 23, a behavior that speaks of a significant depletion of sellers, and causing that in large time frames the intention is still intact long-term bullish.
In the monthly chart of ETH vs USD, we see how the monthly candle in progress is about to close with a lot of bearish rejection, and making the big drop that occurred throughout the market look like a simple correction before continuing to rise.
And it is that there is no reason to think that the sales are going to extend too much more. What happened is only affecting Ethereum in the short term. Right now the adoption and growth seems unstoppable.
The amount of ETH on exchanges has returned to the levels it was at before last Black Wednesday’s crash, which makes analyst Maartunn see this cryptocurrency even more attractive than BTC, although he hates to say it.
We are returning to normality, even when people with the power of influence try to continue sowing fear. I remain firm in my vision that the bull run is not over yet.
In the weekly time frame we see that the fall, with all the force it had, did not cause a too negative scenario.
The price of ETH went to visit the immediate support near $ 2,000, and with excess volatility extended the losses a little more.
We now observe a price that appears to have made a new higher low, possibly to resume the previous trend.
For the fall to have been worrisome, the support at $ 1,676 had to be breached. And even though it can still be traversed, it is an unlikely scenario.
Ethereum price weekly chart. Source: TradingView.
Key levels of Ethereum in the short term
In the daily chart of the price of Ethereum it is observed that even the short-term bearish intentions are running out. The impossibility of the bears to manufacture a minimum cash below $ 1,938 is what confirms this interpretation.
We still don’t see the bulls in control of the short-term trend. To retake it, the resistance zone around $ 2,767 should be crossed, a scenario with good odds in its favor.
If this happens, the land will be cleared up to $ 3,431. Higher up there is no further resistance up to the all-time high. And if we take into account the development of the long-term trend, not even that last level of resistance should be an obstacle for long.
In the bearish scenario (unlikely), the support at $ 1,938 must be crossed to think about higher sales, which would leave the ground free to a minimum of $ 1,733.
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