November 18, 2021 / Analytics

Ethereum Price Analysis: ETH/USD Could Crash By 65%

ethereum forecast

Ethereum (ETH) cryptocurrency rate bounced off the support barrier at $ 4100 and went up. Therefore, the coin should rise to $ 4,800 by November 25th.

Key Points

  • ETH is trading below the 100 hour moving average ($ 4,428).
  • A bearish trend line is forming with resistance around $ 4,690 on the hourly chart.
  • Support is at $ 4,100.

As expected, Ethereum started dumping on November 15th. The coin’s value plummeted 15% and bottomed out at $ 4,064 (Bitstamp data) in two days. As a result of the correction, ETH price increased by 7% and consolidated in the range above $ 4,200.

With a high degree of probability, the bears will again test the support barrier around $ 4,100, which coincides with 23.6% Fib, taking into account the pump from $ 1,700 to $ 4,874. If this obstacle withstands, then ETH/USD will rise to $ 4,800. Otherwise, the asset value will decrease to $ 3,670 (38.2% Fib).

eth chart

Ethereum Price Could Crash By 65%

Analyst Tony Spilotro noticed a fractal on the chart of the dynamics of changes in the rate of Bitcoin cryptocurrency (BTC). In his opinion, the situation that occurred in March 2020 may repeat itself in November. Last year, the price of BTC dropped 58% in five days. Ethereum has dropped in price by 65% ​​during the same time.

eth chart

By analogy, we can assume that the ETH rate:

  • it will first correct by 18% from the bottom (up to $ 4,800);
  • then it will fall by 65% ​​(to $ 1,670).

eth chart

If this scenario is worked out, Ethereum price will fall very quickly and will drop to $ 1,670 in early December. On the positive side, after the dump, a bullish trend will appear, and within six months the cost of ETH will be 69% higher than the previous peak ($ ​​4,874). That is, by the end of spring, the asset rate should rise to $ 8,200.

If in the near future the bears do not break through the support at $ 4,100, then the upward movement will continue in the market. In this case, Spilotro’s assumption about the impending collapse of the cryptocurrency rate will turn out to be incorrect. Fractals are not included in the list of reliable indicators of ETH price movement, but the current situation does not exclude the possibility of a significant drop in the value of the asset.

Technical indicators:

  • 4 hours MACD is in a bullish trend zone.
  • 4 hours RSI is above 40 (in the neutral zone).
  • Major Support Level – $ 4,100.
  • Major Resistance Level – $ 4,800.
  • The nearest pivot points are $ 4,234 and $ 4,491.
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