What happened in the cryptocurrency market seems to have only affected Ether in the short term. The cryptocurrency appears to have reached a higher low, so it could resume its previous trend.
The wave of fear, uncertainty, and doubt (FUD) has accentuated again due to negative comments from the Central Bank of Japan on cryptocurrencies. Although Ether does not escape fear, the drop is not too worrisome as it only seems to have short-term effects.
Ether is currently trading at USD 2,360 and has accumulated a gain of more than 50% since its last all-time low. Such behavior reveals significant seller exhaustion and keeps long-term bullish intention intact on large time frames.
The Great Market Crash Was Just a Correction
According to the monthly ETH/USD chart, the current candlestick is about to close with a lot of bearish rejections. This makes the recent large drop of the entire market suffered a simple correction before the price continues to rise.
For that reason, it is not likely that there will be a growth in Ether sales. What happened has only affected Ether in the short term as its adoption and growth do not seem to stop.
The amount of Ether on exchanges is the same as it was before the latest cryptocurrency market crash. That situation leads analyst Maartunn (@JA_Maartun) to consider this cryptocurrency to be more attractive than Bitcoin.
“Although some influential people are still trying to spread fear, we are returning to normal. I firmly hold my view that the bullish run is not over yet,” said Maartunn.
Medium-Term Bullish Trend Is Still Intact
Despite all the force of the last cryptocurrency market crash, the scenario was not too negative. The price of Ether touched the support near USD 2,000 and lost a bit more due to excess volatility.
The current price of the cryptocurrency seems to have reached a new higher low, which could resume the previous trend.
The drop would have been worrisome if there had been a breach of support at USD 1,676. Although breaking through it is possible, such a scenario is unlikely to take place.
These Are Ether’s Levels in the Short-Term
According to the daily chart of the price of Ether, even the number of short-term bearish intentions is decreasing. The inability of bears to reach a low below USD 1,938 confirms this interpretation.
Bulls are still not in control of the short-term trend as the price of Ether should break through the resistance zone near USD 2,767. This scenario would represent good odds in favor of the cryptocurrency.
The ground will be clear to USD 3,431 if it occurs as there is no further resistance to the all-time high. Taking into account the development of the long-term trend, that last level of resistance should not be an obstacle for long.
In this unlikely scenario, the price of Ether should break through the support at USD 1,938. That would lead to thinking that there will be more sales, which would leave the ground free up to at least USD 1,733.
By Alexander Salazar
