Ethereum (ETH) cryptocurrency rate began to correct after another impulsive upward movement. Therefore, the coin should drop in price to $ 4,150 by November 18th.
On November 10, the cost of Ethereum once again renewed its historical maximum, reaching $ 4,872 (Bitstamp data). However, at a record high level, the asset began to be dumped, and in four hours traders got rid of the maximum number of coins in the last month and a half. A sharp increase in the volume of sold coins, as a rule, signals an upcoming downward movement.
In the first wave of the upward trend, ETH rose by 133%, and in the third – by 84%. The third wave should be longer than the first, therefore, it is too early for the cryptocurrency to go south. On the other hand, in mid-August, the coin corrected ahead of a new round of the bullish trend after the rate increased by 93%. If this situation repeats, then the digital asset will fall in price by 10-12% and then start to rise in price again.
Obviously, the nearest support barrier is located at the 23.6% Fib ($ 4,150), taking into account the pump from $ 1,700 to $ 4,872. If this barrier is broken, ETH rate will drop to $ 3,660 – this mark coincides with 38.2% Fib and the uptrend line. A drop in the value of the coin to $ 4,150 would mean a correction in the third wave, and a drop in the coin’s rate to $ 3,660 would mark the end of the fourth downward wave of the bullish trend.
The upward trend will continue if the value of ETH consolidates above $ 4,700. Breaking this barrier will start the pump up to the psychologically important level – $ 5000. At the same time, the bull run target is located in the $ 6,200-6,500 range. Most likely, the Ethereum rate will grow to this zone by the end of 2021. The only concern about Tuzemun’s mission is the decrease in trade, which has been observed since the end of September. But at the beginning of 2021, a similar dynamic arose before an exponential rise in the price of an asset. Thus, a decrease in the number of purchased and sold coins may indicate an upcoming flight to the moon.
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