Ethereum (ETH) is back in the green after its biggest sell-off in history. The volume profile for ETH/USD shows a big red spike that drove a lot of bag holders to panic sell. The sell-off was fueled by a break of market structure earlier which shattered investors’ confidence. Of course, those who have been around for a little longer knew that this has happened before. However, most ‘analysts’ on Youtube and other social media forums made a very big deal out of this break of market structure. Considering that we have a lot of first-time investors in the space, it was expected to see such a widespread sell-off in the crypto markets. The price is back above the point where most panic sold but now they will have to pay to get back in the game.
You know you are in a bull market when you have to pay more than the price you sold at to get back in the game. This is exactly what is going on although some might disagree that we are in a bull market. I like to think that we have been in a bull market since the inception of Ethereum (ETH). However, we have seen periods of bull and bear trends throughout Ethereum (ETH)’s trading history. The price of Ethereum (ETH) seems to have staged a successful recovery but it might take a long while for investors to turn bullish again. The price may see a recovery short term and it is very likely that this was the bottom. However, it is also very unlikely for Ethereum (ETH) to reach a new all-time high anytime soon.
In fact, there is a strong possibility that ETH/USD may not reach even reach its previous all-time high during the next 12 months. That being said, the price still has a lot of room to go from its current price. After the recent correction, Ethereum (ETH) is expected to enter an accumulation phase where strong hands will accumulate before the next rally. For all we know, that rally could take another 24 months or even longer. However, it is very likely that we will see another rally and the price of Ethereum (ETH) will end up reaching a new all-time high.
Ethereum (ETH) seems to be trading in a falling wedge that it may not be able to break out of before early 2019. Ethereum (ETH) may still be able to climb above $200 by the end of the year but the probability of that happening is now lower than before. The most likely scenario based on previous price action would be that Ethereum (ETH) might end up testing the top of the falling wedge in the weeks ahead. It is likely that it will get rejected and will fall back into the falling wedge. However, it is extremely unlikely that it may fall below the current low. Ethereum (ETH) might break out of this falling wedge in mid-2019 during which time we can see it rising towards the previous all-time high.