Ethereum (ETH) cannot afford a fall below $100 as it is very likely to get out of hands. It is not surprising to see that people waiting on the sidelines had $100 as the ideal target on their minds before they would start buying. ETH/USD has already reached $101 but that’s the thing in times like these, people suddenly begin to count every dollar and cent. Deep down, they think wouldn’t it be nice to see the price drop a little further to say, $92? The problem with an approach like that is that the market does not care about numbers; it cares about certain support and resistance levels. If the price falls below $100 it is very likely to settle close to $50 if not lower. When that happens, it is going to take even longer than before to recover.
Those who have seen the wild bull runs in the past were waiting to see the price drop to current levels. In fact, they facilitated that fall by panic selling most of their coins at levels they should not have. That being said, they are now waiting for the price to drop to a level where they can buy back the number of coins they had before they panic sold. To most of them, it does not matter if the price falls to $100 or $20 because they think we are just going to rocket straight from there to a new all time high. The reality is that this kind of thinking could not be further from the truth. Most of the weak hands during the current cycle entered the market during the last bull run. They have not seen what leads up to that bull run.
Chart for ETH/BTC (1W)
A full cycle for Ethereum (ETH) does not comprise of just a quick pump and dump. In fact, the pump and dump are the most exciting parts of the cycle. The boring parts of the cycle lie in between these two which take years to complete. This is the time when the price mostly trade sideways or in a very tight range. Every support we break has the potential to turn into another resistance which means it is going to be that much difficult to break above it later. The price is now at one of the best points it has ever been from a risk/reward stand point.
The smart money is busy accumulating and it is very likely to pay off in the long term. However, quick buck artists will know soon enough that the price is not going to shoot up to a new all time high any time soon. The beauty of a market correction is that it takes coins from a weak hand and put them into a strong hand. While a weak hand may buy or sell on FOMO or FUD, a strong hand buys after proper due diligence and is only going to sell at the right time. This is how the same market cycles repeat over and over again throughout history.